ECB Offering The Euro Support (EUR/USD), Strengthening Of The Renminbi Supporting The EUR and GBP, SNB Turns Hawkish (EUR/CHF) - Good Morning Forex!
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Summary:
- ECB offering support to the EUR, whilst easing lockdowns in China aids in the weakening US Dollar.
- Euro and GBP are likely to strengthen with the Renminbi.
- SNB and ECB hawkishness offers support to their respective currencies.
- GBP/CAD
Easing lockdowns in China dragging down the US Dollar
Market sentiment for this currency pair is reflecting bullish signals. On Monday the European Central Bank (ECB) announced that it is likely that July would be the starting period for raising interest rates. At the same time, the easing of lockdowns in China has aided in weakening the US Dollar.
The trading week is full of US events along with some European Central Bank events, all of which will be watched closely.
EUR/USD Price Chart
Euro and GBP both showing signs of strengthening
Market sentiment for this currency pair is reflecting mixed signals. The prospect of the Chinese Renminbi rebounding is likely to have a positive impact on the value of both the Pound Sterling and the Euro. In addition the market believes that the Bank of England (BoE) is likely to continue raising interest rates in the coming months along with the increased likelihood of the European Central Bank (ECB) raising the interest rates.
EUR/GBP Price Chart
SNB and ECB hawkishness caused mixed sentiment for this currency pair.
On Thursday last week the president of the Swiss National Bank (SNB) said that they were ready to act on the rising inflation, the hawkishness of the SNB caused the Swiss Franc to rally. The potential hawkishness of the European Central Bank (ECB) is also causing the Euro to strengthen, leaving the market sentiment for this currency pair showing mixed signals.
EUR/CHF Price Chart
GBP rallies against the CAD
The strengthening of the GBP against the CAD throughout last week has come in the wake of increasing UK government bond yields. The strengthening came in the wake of the release of UK employment data, inflation and retail data all which support further increases in the UK government bond yields.
GBP/CAD Price Chart
Sources: finance.yahoo.com, poundsterlinglive.com, dailyfx.com
