New lows in EURUSD. Overview for 07.07.2022

EURUSD updated its 20-year “bottom” again.

The major currency pair remained weak on Thursday. The current quote for the instrument is 1.0186.

Investors continue escaping the risks of a recession and it’s already not important how fast the economy will go down. They have already included all their emotions and sentiments in the prices. 

The FOMC published its Meeting Minutes yesterday. The document says that monetary policymakers believe that interest rates should be raised regardless of any risks to the country’s economic growth. During the June meeting, the rate was raised by 75 basis points, up to 1.50-1.75%. The document confirms that the regulator might introduce a similar rate hike during its next meeting in July. 

Average market expectations imply the benchmark interest rate in the US to reach 3.5% by the end of 2022. Market players aren’t quite confident that the American economy will be able to survive such pressure from the Fed. Some of them are saying that the recession is already here.

Later today, the US will start reporting on its labour market in June. The ADP Employment Change will be published a day later than usual. Other reports to be published are the Unemployment Claims and Challenger Job Cuts. Strong numbers might clam the markets down a little bit.