Fears Of A Global Recession Strengthen (EUR/USD), Expectations More Hawkish BoE (EUR/GBP), CHF Was The Best Performing Currency Last Week (EUR/CHF), NZD/USD
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Summary:
- Swiss Franc could be the most appealing safe-haven currency right now.
- Fears of a high level of striking in the United Kingdom.
- Russia under-delivers on its gas obligations to some European countries.
EUR/USD
The market is reflecting mixed signals for this currency pair. In general there are fears of a global economic recession, this fear is affecting the foreign exchange markets. Russia cut some of its exports in gas to Germany, Italy and France, which foreshadows an increase in gas prices and possibly a complete stop to gas flows. If this occurs, expectations of a euro area recession is likely and will add to further inflation in Europe. All of these factors are driving the price of the EUR/USD currency pair.
EUR/USD Price Chart
EUR/GBP
The market is reflecting bearish signals for this currency pair. Fears of a high level of striking in the United Kingdom is putting the Bank of England (BoE) under pressure to hike interest rates at a rate faster than economists expectations.
Expectations of a more hawkish BoE is offering the pound sterling support against the Euro.
EUR/GBP Price Chart
The SNB’s surprise interest rate hike offered the CHF support
The market is reflecting mixed signals for this currency pair. The CHF was the best performing currency during the trading week last week as the Swiss National Bank (SNB) surprised the market with a 50 basis point hike in interest rates. This move was the first of its kind in 15 years and offered the Swiss Franc support, and made the currency the most appealing safe-haven currency. EUR/CHF Price Chart
NZD/USD
The market is reflecting bearish signals for this currency pair. The New Zealand Dollar has lost momentum as expectations of a hawkish Reserve Bank of New Zealand (RBNZ) fade and Oil prices rise. Global markets continue to struggle amidst rising energy prices and hawkish central banks everywhere.
NZD/USD Price Chart
Sources: finance.yahoo.com, dailyfx.com, poundsterlinglive.com
