The EURUSD pair fell to a fresh 20-year low of 1.0047 on Monday, reflecting markets’ worries about growth and inflation. The pair trades around 1.0065 by the end of the American session, maintaining its downward route towards parity.
China shocked speculative interest as the June Consumer Price Index in the country grew by more than anticipated, hitting 2.5%. Furthermore, Shanghai officials reported the first case of the coronavirus Omicron sub-variant BA-5, spurring concerns of a new lockdown in the region just a few weeks after the end of a month-long isolation mandate. The previous restrictions in the Chinese region exacerbated supply-chain issues, weighing on economic progress and boosting inflationary pressures.
The macroeconomic calendar had nothing relevant to offer for today, with market players waiting for fresh US inflation figures scheduled for the next Wednesday. The US Consumer Price Index is foreseen to rise by 8.8% YoY from 8.6% YoY in May, a fresh multi-decade high. Ahead of the event, Germany will publish the July ZEW Survey on Tuesday, while the US will release the NFIB Business Optimism Index and IBD/TIPP Economic Optimism, both for July.
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