EUR/USD Currency Pair Bullish, KPMG Cuts Growth Forecast For Pound Sterling (EUR/GBP, GBP/USD), RBC Capital Markets Recommend Selling GBP/SEK

Summary:

• RBC are so confident in this they recommended selling the GBP/SEK currency pair.
• Euro’s concerns lie in the rising energy prices and possible supply chain disruptions.
• KPMG cut UK economic growth forecasts for 2022 and 2023.
• Recession concerns are weighing on the US dollar.

Read next: Concerns Of A Global Recession Continue To Weigh On Markets - Take A Look At The EUR/USD, EUR/GBP, GBP/AUD And EUR/JPY Currency Pairs 

EUR and USD facing economic concerns

The market is reflecting bullish signals for this currency pair. Federal Reserve Chairman, Jerome Powell reiterated in congress that it will be tough for the Fed to bring inflation down without harming the economy or disrupting the labour market, this began a downward revision to market expectations for US interest rates.

The biggest concern for the Euro lies in the economic hit in the wake of rising energy prices and possible supply disruptions. Hence, the European Central Bank (ECB) views this as a medium-term source of disinflation, which is yet another reason to take a slower, more cautious approach to normalising monetary policy that has been priced in over the past months.

✕ EUR/USD Price Chart

EUR/GBP currency pair

The market is reflecting bullish signals for this currency pair. KPMG cut UK economic growth forecasts for 2022 and 2023, the cut comes from the expectation of a “mild” recession in the UK economy in 2023, in the wake of surging commodity prices and China's Covid outbreak. News of the downgrade in expectations is driving the Euro to strengthen against the pound sterling.

✕ EUR/GBP Price Chart

Strong Sell recommendations for the GBP/SEK

RBC Capital Markets’ foreign exchange strategists are warning that the pound is likely to suffer losses in the near-term against the Swedish Krona. They are so confident in this they recommended selling the GBP/SEK currency pair. The GBP is expected to take a hit at the end of the Month due to the release of important economic data.

✕ GBP/SEK Price Chart

US recession concerns weighing on the US Dollar

The market is reflecting bullish signals for this currency pair. During last week's trading week, the narrative changed from inflation concerns to recession concerns which are weighing on the US Dollar via lower treasury yields. The UK PM Borris Johnson is looking to hold onto his PM status and run for a 3rd term.

✕ GBP/USD Price Chart

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