Euro sharpens decline to two-week lows on recession concerns
Euro fell in European trade for the third straight session against dollar to two-week lows amid concerns about global recession in Europe due to the Ukrainian war.
Prices Today
EUR/USD fell 0.15% on Thursday to 1.0415, the lowest since June 16, with a session-high at 1.0469.
Euro lost 0.75% on Wednesday, the second loss in a row off three-week highs at 1.0615.
Recession Concerns
Analysts predict a potential recession in the euro zone due to the ongoing Ukrainian crisis, even as the US economy proves more resilient.
The Dollar
The dollar index rose 0.1% on Thursday for the third straight session, hitting two-week highs at 105.19 against major rivals.
The gains come on haven demand amid concerns global recession, and after bullish remarks by Fed Chair Jerome Powell on hiking interest rates.
Monthly Trading
Euro is now down 2.9% so far in June on track for the fifth monthly loss in the last six months.
Palladium heads towards $2000 an ounce
Palladium prices climbed on Thursday as the dollar lost ground against most rivals and traders follow the latest political developments.
The G7 countries announced a new batch of sanctions this week against Russia for its invasion of Ukraine, including banning gold imports and putting a ceiling on natural gas and oil imports from Russia.
Therefore analysts expect a historic contraction in the Russian economy approaching 11.2% this year.
Russia is a major producer of palladium and other industrial metals, with carmakers in particular putting high demand on palladium for use in part manufacturing.
Dollar
The dollar index fell 0.1% to 104.9 as of 5:22 GMT, with a session-high at 105.1, and a low at 104.9.
It comes ahead of a batch of important S data later today, including personal spending levels, and unemployment claims.
Palladium futures due in September rose 1% to $1,966.5 an ounce as of 5:22 GMT.
Wall Street buoyed by Powell's remarks
US stock indices climbed today following remarks by Fed Chair Jerome Powell.
The European Central Bank is meeting emissaries from other global central banks today in Portugal to discuss strategies.
Fed Chair Jerome Powell said in earlier remarks the bank is able to bring inflation back to 2% while maintaining the strong state of employment.
Earlier data showed US economy shrank 1.6% in the first quarter of the year, more than the 1.5% drop expected, and compared to a 6.9% increase in the fourth quarter of 2021.
Dow Jones rose 0.5% to 31,107, while S&P 500 climbed 0.1% to 3,926, as NASDAQ added 0.2% to 11,201.
Oil prices hit two-week highs ahead of OPEC's meeting
Oil prices rose in European trade for the fourth straight session to two-week highs amid supply shortages following remarks by French President Emanuel Macron.
US crude stocks haven fallen as well according to initial data, in turn underpinning prices.
Global Prices
US crude rose 1.8% to $113.92 a barrel, the highest since June 17, while Brent added 1.75% to $120.02 a barrel, the highest since June 17.
US crude rose 1.75% yesterday, while Brent climbed 2.4% on supply shortage concerns.
Libyan Output
Libyan authorities said they might close some oil exporting ports amid overwhelming conditions that are preventing proper operations.
Ecuadorian Output
Ecuadorian Energy ministry said the country might suspend oil output completely in the next two days due to ongoing anti-government protests.
OPEC
OPEC's meeting has commenced today to set production targets ahead of the OPEC + official meeting in August.
US Stocks
Initial US data showed a drop of 3.8 million barrels in US crude stocks last week.
Official data will be released today from the US governments on crude stocks.