EUR/USD 2022 Forex Pair Projection
Global Market
The implications of the Russia-Ukraine war continue to plague the global economy and financial institutions. A result of sanctions and retaliations.
Analysis of global currency exchange shows an increasing currency-hits trend. A slide indicated by the 2022 EUR/USD Forex pair.
Comparative Analysis
A comparative Forex analysis of the Q1 EUR/USD 2022 pair projection of Martin Essex on the 21st December 2021 on DailyFX scaled increased interest rates of other currencies as opposed to the Eurozone as a factor to its downward trend.
A Bloomberg article by Alice Gledhill on the 15th of May revealed The Hongkong and Shanghai Banking corporation HSBC Holdings Plc and Royal Bank of Canada RBC capital market, projection of EUR/USD parity in 2022. The sliding of Euros towards the Dollars continues the bearish trend from last year. Falling from 1.22 last June to about 1.05 May this year.
Market Projection for 2022s
The Trading Economics, while forecasting EUR/USD parity – the first occurrence in twenty years – also predicted a second GDP estimate showing a slight expansion in the Eurozone economy by 0.3%. A marginal increase from the 0.2 percent preliminary reading. However, the European Community EC, cut February’s 4 percent growth prediction to 2.7 percent for the year.
Yahoo finance highlights the pair trading at 1.07 in early hours of 31st May at about 03.44 GMT. A late rally to build a resistance towards a bullish trend as May closes. A result of expectation on the European Central Bank ECB rate hike. And the possibilities the U.S. federal reserve could slow its rate hike.
However, shock inflation data of the U.S. Customer Price Index CPI of about 8.6 percent year-on-year increase had an immediate impact on the forex pair.
The Action Forex AF June 13 report suggests a possible bull break of 1.0786 could target 1.0935 resistance metrics. While a break of 1.0626 will indicate rejection towards the bear which could test the 1.0348 support.
Several analysts predict a long term slide of the Euros against the Dollar this year despite efforts from the ECB to mitigate the Euros fall. Trade projection of an even Euros against the Dollars have become popular for the third and fourth quarters of the year.
Jude O. Enosegbe
Senior Finance Writer
Money rules the world, but only a few people understand it. I am a trained financial and investment literacy educator, who love to explore how money works. What started out of mere curiousty has translated to impacting thousands of people globally. I combine a strong analytical mindset with a talent for effective communication, crafting high-quality content that breaks down intricate financial subjects into digestible insights. From market analysis to personal wealth management, I am committed to delivering audience-centric financial narratives that inspire action.
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