Daily summary: EURUSD hits parity amid rising recession fears

• The EURUSD pair hit parity today for the first time in 20 years. On the other hand, the parity appeared earlier in response to the dot-com bubble, i.e. in 2000, however two years later the pair rebounded sharply. 

• The dollar is generally the 'king' of the market which causes most asset classes to weaken significantly

• Prices of virtually every commodity group fell today. Crude oil dropped over 7% due to the strong dollar and the risk of a economic slowdown

• Corn prices plunged  more than 7% today as USDA forecasts higher stockpiles 

• Coffee prices reached lowest level since mid-May, even despite the massive decline of inventories on exchanges

• Copper prices continue to decline and lost more than 4% during today’s session also due to slowdown concerns and the risk of introducing covid restrictions in China and Europe

• The US economy showed another recession signal - deepening reversal of the yield curve. The widely followed 2-year/10-year spread was as low as -12 basis points

• Slightly better moods prevailed on European and US stock markets. The DAX gained 0.57%, while major Wall Street indices are trading slightly above the flatline

• Tomorrow traders' attention will focus  on very important US inflation reading. Headline is expected to increase slightly to 8.8% YoY, while core inflation is expected to decline from 6.0% to 5.7% YoY.

SILVER continues to move lower, however sellers again failed to break below major support at $18.70. Source: xStation5