The EURUSD pair plunged to a 20-year low of 1.0234, now trading above the level. The risk-averse environment favored the dollar since early in the Asian session, but European news fueled the fire and triggered a massive sell-off of high-yielding assets. Worries revolve around a global recession amid persistent inflationary pressures and slowing economic progress.
The S&P Global issuedits final readings of the June EU Services and Composite PMIs. The numbers showed that growth across the EU slowed to a 16-month low. Services increased at a weaker rate, while goods production fell for the first time in two years.
The German Economy Minister Robert Habeck noted that the energy industry crisis could have a negative impact on financial markets. He did not rule out intervening gas prices. Since Russia reduced its gas flows to the country, Germany fears a complete blackout of Moscow’s provision, as Russia will momentarily shut down the NordStream-1 pipeline on July 11 for annual maintenance.
Today, the EU will release May Retail Sales, while Germany will publish Factory Orders for the same month. More relevantly, the European Commission will release Economic Growth Forecasts. Across the pond, the US will unveil the June ISM Services PMI, foreseen at 54.5, while S&P Global will release its own estimate. In the American afternoon, the attention will be on the FOMC Meeting Minutes.
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