Forex Today: EUR/USD, GBP/USD Hit Multi-Year Low Prices on Fed Fears

Yesterday saw a firm and fairly strong advance by the US Dollar again almost every other currency, but technical breakdowns were especially notable in the EUR/USD and GBP/USD currency pairs which both reached new multi-year low prices, with the former trading well below its parity level. The US Dollar Index is just a few points off a multi-year high. There is a long-term bullish trend in the US Dollar which can give Forex trend traders a statistical edge if they follow it, as we are likely to see still lower prices in these currency pairs over the coming days.Global stock markets have taken a beating over the past day as fearful sentiment grew regarding the Federal Reserve’s monetary policy, although it is worth remembering that the US stock market is in a bear market anyway. The S&P 500 Index and the NASDAQ 100 Index both ended the day down by more than 2%, as did the European DAX. Asian indices also lost ground during the Tokyo session.In the Forex market, the Euro and the British Pound are the weakest major currencies, while the US Dollar is the strongest.Natural Gas futures rose strongly yesterday to end the day at a new record high. This can also be an interesting trade for trend traders as many brokers offer it as a CFD.Manufacturing and Services PMI survey results are expected today for the USA, the UK, Germany, and France.Daily new coronavirus cases globally dropped last week for the fifth consecutive week.It is estimated that 67.5% of the world’s population has received at least one dose of a coronavirus vaccination, while approximately 7.6% of the global population is confirmed to have contracted the virus at some time, although the true number is highly likely to be much larger. Total confirmed new coronavirus cases worldwide stand at over 601.8 million with an average case fatality rate of 1.08%. The rate of new coronavirus infections appears to now be most significantly increasing in South Korea, The Marshall Islands, Moldova, and Tonga.