Euro extends fall to fresh five-year low against the dollar

There continues to be little relief for the euro as it is seen slumping again in early European trading. The 2020 low of 1.0635 is showing signs of cracking under the downside pressure, with the low today now touching 1.0622.

There isn't much standing in the way of a further drop in the currency towards 1.0400 next potentially, if you go by the charts.

The latest developments with regards to Russia's gas 'blackmail' isn't something that will be of much comfort to Europe, with the region already struggling amid soaring inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term pressures. The latest German GfK consumer morale release underscores the rapid deterioration in sentiment and is something that will weigh more heavily later in Q2.

Add to the fact that it remains a pipe dream for the ECB to raise rates to zero while the Fed is being rather aggressive, it is tough to find much relief for EUR/USD at the moment.

If anything, the pair might only be able to seek some comfort from a technical retracement or if the Fed starts to cool down on rate hike talks. Both of which isn't too likely ahead of the FOMC meeting on 4 May.