Forex Today: Dollar soars as Wall Street plunges
18.05.2022, 20:00

Forex Today: Dollar soars as Wall Street plunges

What you need to take care of on Thursday, May 19:

The greenback edged higher against its high-yielding rivals but eased against safe-haven currencies, reflecting the dismal market mood.

Inflation was the primary catalyst of the latest bout of risk aversion. The EU Consumer Price Index was confirmed at 7.4% YoY in April,  while the UK CPI increased by 9% in the year to April. Finally, the Canadian benchmark hit 6.8%. Overheating price pressures are a drag on economic growth, already undermined by supply-chain issues and the Eastern European crisis.

Two US institutes, Wells Fargo and S&P, downwardly revised growth forecasts but expect inflation to remain high. Wall Street resumed its slump, with the three major indexes sinking in the red. The DJIA is about to close over 1,100 lower, while the S&P 500 and the Nasdaq Composite are down over 4% each.

The yield on the US 10-year Treasury note stands below 2.90%, as investors rushed into bonds’ safety.

The EUR/USD pair trades around 1.0460, while GBP/USD is now at 1.2340. The AUD/USD pair plunged to 0.6960 while USD/CAD recovered the 1.2800 threshold. On the other hand, the USD/CHF fell to 0.9880 while USD/JPY trades in the 128.20 price zone.

XAUUSD was unable to attract speculative interest, now hovering around $1,816 a troy ounce. Crude oil prices edged lower, with WTI now changing hands at $106.90 a barrel.

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