empty
 
 
21.03.2022 08:06 AM
EUR/USD stands still near 1.1040

This image is no longer relevant

The market has witnessed cautious trading on EUR/USD at the start of the week, and a further movement is to be seen. The pair is likely to stay at current levels in the short term.

Unlike the euro, the greenback is again on the winning streak. On Monday, March 21, EUR/USD trades at 1.1040, repeating the performance of the previous week. Buyers will try to protect support although a bullish scenario is still relevant.

This image is no longer relevant

In the light of prolonged geopolitical uncertainty surrounding Ukraine, investors are turning to USD as it remains a popular safe haven. Therefore, demand for the greenback is increasing, adding pressure on the euro. Analysts foresee a steep rise in the dollar.

In the event of escalating tensions between Russia and Ukraine, demand for the greenback will peak. However, it is unlikely to remain strong, experts believe. The dollar's bullish bias may turn bearish. Most market participants have already closed their long positions on USD. If this trend gets deeper, the dollar will become weaker.

The long-term upside potential of USD is making many analysts cautious. Some of them think the greenback is approaching the so-called "point of no return." Its role as the only global currency irreplaceable in international settlements is now in question. A number of countries, including Russia, Turkey, Brazil, India, and China, have recently switched to national currencies in mutual settlements. In this light, the dollar has declined in importance, experts emphasized.

Concerns are growing over rising inflation in the United States. Even a slight decrease in the share of USD and US securities in international trade and foreign reserves could harm the global economy. Against this background, new inflation hikes in the US and a fresh round of the global financial crisis could take place. Therefore, the greenback could get caught in a financial trap, which is very difficult to get out of.

Larisa Kolesnikova,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $1000 more!
    In June we raffle $1000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback