- A combination of a multiple of things has driven the Euro to its downfall.
- The Nasdaq recorded 13 new highs and 308 new lows on Tuesday.
NASDAQ closes Tuesday’s trading day higher
The tech-heavy Nasdaq closed 1.75% higher on Tuesday's trading day. The Nasdaq recorded 13 new highs and 308 new lows on Tuesday. U.S based stocks have been under continuous pressure throughout the year in the wake of the Fed moving away from easy-monetary policy through raising borrowing costs.
The markets are awaiting the next interest rate hike from the Fed at the end of July and are keeping a watchful eye on US economic data in the coming days and weeks.
IXIC Price Chart
The Euro facing downward pressure
Whilst there has been no particular event that has sparked the plunging of the Euro on Tuesdays trading day, the combination of a multiple of things has driven its downfall.
Hence, the events include Russian gas deliveries for June which was 40% shorter than expected, this has caused European gas prices to remain elevated. In addition, Nord stream is set to close completely for annual maintenance, where it shuts down completely during July 11-21st, the risk, however, is that the pipeline may not come back online. In addition European Central Bank (ECB) representative Nagel did little to help the Euro as he cautioned against using monetary policy to limit risk premia of indebted states, he also stated that an Anti-Fragmentation tool could only be used during exceptional circumstances. Although Bundesbank’s Nagel is part of the minority, this does raise the risk of a watered-down Anti-Frag tool, which has ultimately disappointed the market expectations.
Sources: finance.yahoo.com, fxmag.com