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Weak Economic Sentiment in Europe Affects the Euro, USDJPY Slips & PepsiCo Earnings Beat Expectations

Dollar hits Euro parity, as economic sentiment drops on Europe

 On Tuesday, the U.S. Dollar moved towards parity with the Euro, as economic sentiment continues to decline on the continent.

Following a drop to a twenty year low to start the week, EURUSD fell lower in today’s session.

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The move saw the pair hit a low of $0.999, which is the lowest rate for EURUSD since 2002.
German economic sentiment fell by more than expected, to -53.8 from -28.0.

As of writing this, the pair is trading at $1.0036.

USDJPY slips, as Yellen & Suzuki move to take action against inflation

USDJPY slipped in today’s session, following the news that U.S. Treasury Secretary Janet Yellen and Japanese Finance Minister Shunichi Suzuki agreed to work together on curbing inflation.

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Speaking at the G20 meeting of Finance Ministers, the two stated that, “We will continue to consult closely on exchange markets and cooperate as appropriate on currency issues, in line with our G7 and G20 commitments”.

This cooperation comes as USDJPY moved to its highest level in over two decades in recent days.

Although the Federal Reserve have opted to cut rates over the past few months, the BOJ have so far chosen to keep policy unchanged.

PepsiCo stock marginally higher, as earnings exceed expectations

As we head to the beginning of Q2 earnings for 2022, markets have already begun to anticipate the release of results from some key consumer companies.

One such company is PepsiCo, which released its quarterly earnings today, beating expectations.

Heading into the call, the company had expected to report earnings of $1.74 on revenue of $19.5 billion for the quarter.

Following the release, it was reported that earnings came in at $1.86, with revenue of $20.23 billion.

In a statement after the report, the company’s CFO Hugh Johnston stated that, “We are facing inflation like everyone else, and we think that is going to persist for a while, but we are taking enough pricing to be able to manage the inflation, and our focus is really much more on how do we drive costs out of the business”.

“Are you willing to lose money on a trade? If not, then don’t take it. You can only win if you’re not afraid to lose. And you can only do that if you truly accept the risks in front of you.”

– Sami Abusad.

Eliman Dambell

Senior Market Analyst