Summary:
- USD closing in on the highest price in almost two decades.
- Russia tightens Gas supplies to Europe.
- GBP showing signs of stability against the JPY.
- AUD CPI rates shock market participants.
Euro is, once again, bested by the US Dollar today.
Since the market opened this morning the Euro has weakened further against the US Dollar. However, over the past 24 hours the EUR/USD currency pair price hit its lowest value since March 2020. Investor sentiment is mixed and according to Dailyfx.com, 78% of investors are net-long on the EUR/USD. The borrowing costs for USD in currency derivatives increased on Thursday as USD got closer to its highest value in almost two decades.
EUR/USD Price Chart
Euro Weakens as Russia cuts Gas supplies.
GBP has been strengthening against the EUR in the past 24 hours as Russia cuts gas supply to the EU, in addition scientists are warning of EU stagflation and the potential for an economic recession looms. The uncertainty around Russia's future decisions regarding supplying Europe is a topic of concern, and could potentially weaken the Euro further. However, the current market sentiment for this currency pair is showing bullish signals.
EUR/GBP Price Chart
GBP finding stability against the JPY.
Current market sentiment for the GBP/JPY currency pair is showing bearish signals, however since the market opened this morning, the GBP has strengthened against the JPY. The increase in the price since Wednesday comes with some market stabilisation, finally. It is worth paying attention to this pair amidst the changing market as we may see the price volatility continue as risk appetite changes.
GBP/JPY Price Chart
AUD shows strength against NZD.
The AUD strengthened against the NZD inlight of its rise in CPI. The recovery of the AUD comes in the aftermath after a crash thanks to the lockdowns in China. The recovery of the AUD is dependent on the Reserve Bank of Australia and their future decisions on interest rates.
AUD/NZD Price Chart
Sources: dailyfx.com, finance.yahoo.com, poundsterlinglive.com
