EUR/USD Tumbles Below 1.14 for the First Time Since July 2020

*OspreyFX would like to state that traders should research extensively before following any information given hereby. Any assumptions made in this article are provided solely for entertainment purposes and not for traders to guide or alter their positions. Please read our Terms & Conditions and Risk Disclosure for more information.

Key Takeaways

EUR/USD reaches 1.1360, a level last seen in July 2020, as the US dollar gains traction
Other pairs, including GBP/USD, and USD/JPY are also led by a strong dollar early in the week

What’s on Focus in the Markets?

The EUR/USD pair slipped under the 1.1400 level on Monday after traders piled once again into the US dollar. As market participants gave the greenback a boost, major currencies in the forex market were pressured by a stronger dollar.

Broadly, the dollar-dominated the market environment yesterday with the euro and sterling losing some grounds. The EUR/USD traded at a low of 1.1360, a level last seen in July 2020.

The GBP/USD, in addition, also declined on the day. And the USD/JPY turned higher to an intraday peak of 114.30. The USD/JPY hovers near a three-year top.

It’s worth noting that the euro and the sterling are likely to experience increased volatility later in the week. On Wednesday, inflation data for Europe and the UK will reveal if consumer prices eased from their multi-year highs in the month of October.

What’s the Latest News on Bitcoin?

In cryptocurrency markets, the price of bitcoin fell from its recent top on Monday. More precisely, the original token slipped near $61,000 as traders offloaded some of their bets. Presently, bitcoin is trading near $60,900 as momentum has waned moderately. So far in the week, the price of bitcoin has lost about 5% of its value.

Ether, the second-biggest token in crypto, is also in the red this week. The price of the Ethereum coin is now floating near $4,340, down a little more than 5% for the week.

Solana, the cryptocurrency that rose to fame this year with its spectacular gains, is now available for trading on our platform. The SOL token is showing a decline of about 7% this week as it’s currently trading near $230 apiece. In other words, the slide could present an attractive bet for those looking to enter the market during the downturn.

Where Are Stocks Headed?

Stocks on Wall Street finished the first trading day of the month largely muted. All three major indexes, the Dow Jones, the S&P500, and the Nasdaq Composite, floated sideways and ultimately declined on the day.

To this end, investors have been increasingly cautious to place big bets and take outsized risks amid looming inflation. Additionally, the economic outlook is clouded by the prospects of higher interest rates and withdrawal of the Federal Reserve stimulus.

In individual stocks, Tesla continued its decline into a second week. The move lower was underpinned by Elon Musk’s selling spree. The billionaire chief executive on Monday offloaded an additional $980 million worth of Tesla shares.

With this in mind, investment bank JPMorgan filed a suit against Tesla. The banking giant said the car company has breached its contract over stock warrants and is now seeking to recover $162 million. “Tesla has flagrantly ignored its clear contractual obligation to pay JPMorgan in full,” the complaint says.

What’s the Price of Gold?

Sticky inflation has prompted traders and investors to seek safety in gold. As a result, the price of the precious metal is now trading at a five-month high of $1,870 per troy ounce. Since November, the yellow metal has added almost 6%, staying true to its safe-haven characteristics.

Today’s Economic Calendar (EST times)

08:30 am, USD, Core Retail Sales (Oct)
08:30 am, USD, Retail Sales (Oct)
11:10 am, EUR, ECB President Lagarde Speaks
08:20 pm, EUR, ECB President Lagarde Speaks