Free Trial
AUD

AUD/JPY Can't Break Back Above 50 Day MA

US TSYS

NFPs Near

USDCAD TECHS

Outlook Remains Bearish

JGB TECHS

(U2) Technical Outlook Still Positive

AUDUSD TECHS

Pullback Considered Corrective

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

EUR/USD Plummets to New Multi-Decade Low

FOREX
  • The EUR/USD primary downtrend resumes Tuesday, with the pair taking out the earlier YTD lows at 1.0350 to put prices at levels not seen since 2002. The acceleration lower in the pair coincides with the return of US markets after the July 4th holidays, with lower-than-expected French services and composite PMI data adding extra weight.
  • This underpins a broader risk-off theme, evident in lower equity markets and lower Treasury yields headed into the NY crossover. The US 10y yield has reversed early upside to sit within range of the July lows printed on Friday at 2.7873%. A break below that level would mark the lowest 10y yield since late May and a ~75bps turnaround off the mid-June highs.
  • The Reserve Bank of Australia raised rates by 50bps overnight to 1.35% - alongside expectations. The decision prompted little immediate market response, with the RBA signaling further tightening steps to come. Through the European open, however, broad greenback strength has worked against AUD/USD, putting the pair briefly below 0.68 and within view of the 2022 lows at 0.6764.
  • Focus going forward turns to factory orders and the final durable goods data for May, while BoE's Tenreyro is also due to speak following the publication of the BoE's Financial Stability Report.
205 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.
  • The EUR/USD primary downtrend resumes Tuesday, with the pair taking out the earlier YTD lows at 1.0350 to put prices at levels not seen since 2002. The acceleration lower in the pair coincides with the return of US markets after the July 4th holidays, with lower-than-expected French services and composite PMI data adding extra weight.
  • This underpins a broader risk-off theme, evident in lower equity markets and lower Treasury yields headed into the NY crossover. The US 10y yield has reversed early upside to sit within range of the July lows printed on Friday at 2.7873%. A break below that level would mark the lowest 10y yield since late May and a ~75bps turnaround off the mid-June highs.
  • The Reserve Bank of Australia raised rates by 50bps overnight to 1.35% - alongside expectations. The decision prompted little immediate market response, with the RBA signaling further tightening steps to come. Through the European open, however, broad greenback strength has worked against AUD/USD, putting the pair briefly below 0.68 and within view of the 2022 lows at 0.6764.
  • Focus going forward turns to factory orders and the final durable goods data for May, while BoE's Tenreyro is also due to speak following the publication of the BoE's Financial Stability Report.