The US dollar continued to rise sharply against all currencies, and this happened due to the tight monetary policy of the Federal Reserve, and the interest rate differential between the United States and other countries.
The US economy is still growing relatively faster compared to other economic countries, in addition to the fact that the US dollar was and still is a “safe haven”.
The EUR/USD pair fell to its lowest level in 20 years, close to parity levels between the two currencies.
European stock markets had a weak start yesterday, 11.7.2022, in the first of the weekly trading sessions. Amid fears of an economic recession that will push copper and oil prices to decline.
US stock indices fell sharply yesterday, Monday, 11.7.2022, with investors focused on the US inflation figures for June, which will be released on Wednesday, 13.7.2022.
European stock indices are expected to decline today, 12.7.2022, after the decline in Asian stock indices, affected by the weakness in the Chinese economy after imposing new severe restrictions, due to the high incidence of Coronavirus.
We will likely witness a further decline in the British currency, the Sterling, after the statements of the Governor of the British Central Bank, Mr. Andrew Bailey yesterday, 11.7.2022. He said that he expects inflation to decline sharply in 2023.