(EUR/USD, EUR/GBP) Euro Strengthens In The Wake Of Villeroys Comments On Monday, (AUD/JPY), (GBP/USD) Pound Sterling Showing Strength - Good Morning Forex!
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Summary:
- Villeroys comments on the weakness of the Euro.
- AUD is likely to face pressure in the wake of the poor economic data coming out of China.
- GBP benefiting from favorable economic data release regarding wages and unemployment.
Euro gains on the USD
On Tuesday the Euro gained more than 0.5% on the USD, in addition the market sentiment for this currency pair turned bullish. The bullish sentiment and rise in the price of the EUR/USD currency pair comes in the wake of European Central Bank (ECB) representative Villeroy expressing his concerns around the adverse effects a weak Euro would have on price stability. On Monday Eurozone government bonds rose to multi-year highs, Villeroy stated that the weakness of the Euro on currency markets could steer the ECB from reaching their inflation targets.
EUR/USD Price Chart
Pound Sterling gains on the Euro
Market sentiment is bearish for this currency pair, the Pound Sterling has been getting the better of the Euro on Tuesday, with EUR/GBP losing almost 0.8%. Despite the adverse economic conditions in the UK, the currency seems to be showing slight signs of recovery. However, this recovery may be short lived, as the Bank of England (BoE) approaches the end of their interest rate hiking cycle, the Pound Sterling is likely to be left vulnerable to its counterparts.
EUR/GBP Price Chart
AUD shows strength despite poor Chinese economic data
On Tuesday the AUD gained more than 1% on the JPY, despite this increase, market sentiment is showing bearish signals. The Bank of Japan (BoJ) representatives continue to stress the importance of monetary policy easing in supporting the economy. In conjunction, the AUD is under pressure after China released their economic data on Monday, the AUD is vulnerable to the poor economic data from China, this is driving the bearish sentiment.
AUD/JPY Price Chart
GBP benefitting from favorable economic data
The GBP/USD currency pair is showing bullish market signals. On Tuesday the Pound Sterling has gained more than 1.2% on the US Dollar, this comes as the Bank of England (BoE) released data on unemployment and wages that surpassed market expectations. As a result, this data has seemed to change investor attitude toward the UK economy.
GBP/USD Price Chart
Sources: dailyfx.com, poundsterlinglive.com, finance.yahoo.com
