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ECB Interest Rate Announcement Due Tomorrow Offers Euro Support (EUR/USD, EUR/GBP), JPY Facing Negative Outlook (USD/JPY), Potential For A Hawkish SNB Offers CHF Support (USD/CHF)

ECB Interest Rate Announcement Due Tomorrow Offers Euro Support (EUR/USD, EUR/GBP), JPY Facing Negative Outlook (USD/JPY), Potential For A Hawkish SNB Offers CHF Support (USD/CHF)| FXMAG.COM
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Table of contents

  1. Euro holds steady
    1. Anticipation of ECBs announcement offers Euro support
    2. Negative outlook for Japanese Yen is likely to continue
    3. CHF holding its position in the market

Summary:

  • Markets are becoming more optimistic around hopes of a more hawkish European Central Bank (ECB).
  • Firmer oil prices adding to downward pressure on JPY.
  • Strong market expectations of a more hawkish Swiss National Bank (SNB).

Read next: DOW 30 Turbulent In The Wake Of Targets (TGT) Profit Warning, Japanese Yen Suffering From BoJ Monetary Easing 

Euro holds steady

The market is reflecting mixed signals for this currency pair. The markets are becoming more optimistic around hopes of a more hawkish European Central Bank (ECB) tomorrow after adding a couple more basis points to the yearly forecasts. There has been talk of a 50bps hike in July and rumors of a possible hike on Thursday, it is likely that the market could see a change in ECB tone which has allowed the Euro to remain resilient against the US Dollar.

On Wednesday, the market opened with strong economic Q1 data for the eurozone. The euro did not react instantly to the release of this data, likely due to its delay.

ecb interest rate announcement due tomorrow offers euro support eur usd eur gbp jpy facing negative outlook usd jpy potential for a hawkish snb offers chf support usd chf grafika numer 1ecb interest rate announcement due tomorrow offers euro support eur usd eur gbp jpy facing negative outlook usd jpy potential for a hawkish snb offers chf support usd chf grafika numer 1 EUR/USD Price Chart

Anticipation of ECBs announcement offers Euro support

The market is reflecting mixed signals for this currency pair. The Euro has gained against the pound sterling ahead of the market awaiting the European Central Banks (ECB) interest rate announcement, which is due tomorrow. Earlier in the trading week the pound sterling rallied in response to the news of Boris Johnssons vote of no confidence. If the ECB announces an interest rate hike in July, the pound sterling currency could be under pressure against the Euro.

ecb interest rate announcement due tomorrow offers euro support eur usd eur gbp jpy facing negative outlook usd jpy potential for a hawkish snb offers chf support usd chf grafika numer 2ecb interest rate announcement due tomorrow offers euro support eur usd eur gbp jpy facing negative outlook usd jpy potential for a hawkish snb offers chf support usd chf grafika numer 2 EUR/GBP Price Chart

Negative outlook for Japanese Yen is likely to continue

The market is reflecting bullish signals for this currency pair. In addition to the Bank of Japan (BoJ) continuing its monetary easing, firmer oil prices have added to the downward pressure on the Japanese Yen and both of these factors will continue to add to the negative outlook for the safe-haven currency.

ecb interest rate announcement due tomorrow offers euro support eur usd eur gbp jpy facing negative outlook usd jpy potential for a hawkish snb offers chf support usd chf grafika numer 3ecb interest rate announcement due tomorrow offers euro support eur usd eur gbp jpy facing negative outlook usd jpy potential for a hawkish snb offers chf support usd chf grafika numer 3 USD/JPY Price Chart

CHF holding its position in the market

The market is reflecting bullish signals for this currency pair. The Swiss Franc has recovered against the US Dollar in comparison to the lows experienced in mid-May when the US Dollar was at its strongest, the recovery comes in the wake of market expectations of a more hawkish Swiss National Bank (SNB). the expectations come from indications from policy makers that the SNB will increase its interest rates for the first time since the 2008 financial crisis.

ecb interest rate announcement due tomorrow offers euro support eur usd eur gbp jpy facing negative outlook usd jpy potential for a hawkish snb offers chf support usd chf grafika numer 4ecb interest rate announcement due tomorrow offers euro support eur usd eur gbp jpy facing negative outlook usd jpy potential for a hawkish snb offers chf support usd chf grafika numer 4 USD/CHF Price Chart

Sources: finance.yahoo.com, poundsterlinglive.com, dailyfx.com


Rebecca Duthie

Rebecca Duthie

Remote Editor and writer Intern
FXMAG.COM

Rebecca has a bachelors degree in Investment Management, a Post Graduate Diploma in Financial Planning and is currently enrolled in a Masters program in International Management with a Specialization in International Finance. 


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