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The vast majority of retail client accounts lose money when trading CFDs.

You should consider whether you can afford to take the high risk of losing your money.

Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail client accounts lose money when trading CFDs.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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US dollar strength devours EUR/USD, GBP/USD & NZD/USD

The US dollar has remained the strongest currency in the market for the past month without wavering. It had been a significant disadvantage to other foreign currencies paired against it. The dollar index had remained strong, above 103.5. 

The dollar has consistently outrun most currencies matched against it in the market. The most pronounced forex pairs include EURUSD, GBPUSD, and NZDUSD. 

EUR/USD has seen its worst days ever in the market over the last five years, creating its recent all-time-low at 1.04791 this week. The fall of the EUR USD is considered an impact of the Russian-Ukraine war and increased inflation in the Eurozone. EURUSD is currently struggling for recovery, with the price pushing higher during the Asian session. To turn bullish again, EUR/USD needs to break the current resistance at 1.05360.

GBP/USD has been on a strong bearish trend for the past two months. The price has tested its two years low this week at 1.23300. The fall in pounds is because of several factors, especially the poor global economic data and the recent hike in the interest for the dollar. The pair is currently gasping for recovery with its next resistance at 1.23888. 

NZD/USD has fallen massively through April to hit a new All-time-low at $0.63990 this week, marking its lowest price level in the past four years. 

Many analysts believe that investors have probably lost interest in the country's economy and now embraced the US economy due to its rising strength.

According to New Zealand's economic survey, most investors have projected that the economy will continue to deteriorate given its high inflation rate compared to the US Dollar. 

While the pair seem to be at its lowest point in four years, investors have not yet found any conviction to buy back. The steady decline in the European market appears to be dragging down the economy of every other nation dependent on Europe.

Finally, all eyes are currently set on the NFP report for today which would determine the next strong movement for these pairs. The result of the NFP today will decide whether the dollar remains stronger or dwindles in favour of other currency pairs.

Last Updated: 06/05/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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