Exchange currencies

Exchange currencies and
get free lottery tickets.

Prize pool 500 000 PLN

Join the lottery >

Exchange rates in the shadow of the dollar's power, EUR/USD breaches pandemic lows, GBP and NOK heavily battered (Daily analysis 28.04.2022)

28 Apr 2022 8:17|Bartosz Sawicki

The dollar continues to dominate the foreign exchange market. Its appreciation against other currencies continues and is, in fact, gaining momentum. The euro has broken through pandemic lows, and the pound and the Norwegian krone, among others, have lost ground to the single currency in recent days. On the global markets, the sentiment is chimerical, and the key point of the day may be the reading of the dynamics of the US GDP developed in Q1.

Euro, dollar and franc exchange rates are rising the strongest in weeks after news of gas supplies; source: Conotoxia

US dollar: new records of strength, the EUR/USD in a downward spiral

While there are attempts to stabilise the sentiment on the equity markets and push up the indexes, the trend in the strengthening of the dollar has not lost its momentum. In fact, over the last few dozen hours, it has even accelerated. This trend can be compared to an avalanche, which must stop at some point, but for the time being, is crushing all the obstacles on its way. In the case of the EUR/USD exchange rate, one of these was the pandemic lows of March 2020. Uncertainty about the prospects of the European economy and its energy security after the cessation of Russian gas supplies to Poland and Bulgaria became a pretext for an even stronger retreat from the common currency.

The dollar has the most important assets on its side: stronger growth, a more hawkish central bank and energy independence. Currently, the 1.05 level is being tested, and its crossing in the closing month's prices could lead to a deepening of the decline towards the lows of early 2017, which are located near 1.0350. Parity could be the next target, but it should be remembered that in a currency market, very dynamic reshuffles like the one we are seeing now often lead to an extreme deviation of the value of individual currencies from their fundamental value. At the moment, we are in the eye of the cyclone: the war, the pandemic restrictions in China, the spiralling sell-off on the equity markets, the collapse of the sovereign bond market and even the fear of recession in Europe are making the dollar the natural choice for investors. Currencies considered to be more risky, such as the pound or the Norwegian krone, are even more overvalued than the euro.

28 Apr 2022 8:17|Bartosz Sawicki

This commentary is not a recommendation within the meaning of Regulation of the Minister of Finance of 19 October 2005. It has been prepared for information purposes only and should not serve as a basis for making any investment decisions. Neither the author nor the publisher can be held liable for investment decisions made on the basis of information contained in this commentary. Copying or duplicating this report without acknowledgement of the source is prohibited.

See also:

25 Apr 2022 8:45

Currency exchange rates after the French elections: the euro continues to sink, the dollar attracts, the zloty is at risk (Daily analysis 25.04.2022)

19 Apr 2022 9:00

Exchange rates under the dollar's influence, yen on the ropes, euro sinks (Daily analysis 19.04.2022)

11 Apr 2022 9:08

Currency exchange rates following the French elections: euro still anaemic, close to lows against the franc and the dollar (daily analysis 11.04.2022)

31 Mar 2022 9:55

Currency exchange rates without significant fluctuations, zloty stronger at the end of the quarter (Daily analysis 31.03.2022)

Attractive exchange rates of 28 currencies

Download our app

Stay tuned and make managing your favourite currency services faster, easier, and more convient. Wherever you are.

See our application