Forex Rates: British Pound (GBP) Strengthening? Weak (EUR) Euro? GBP, NZD And AUD Supported By Monetary Policy?
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Summary:
- The GBP is strengthening amidst the Bank of England decision to increase treasury yields in an attempt to fight against inflation
- In late March early April, the EURO gained in value as a result of the peace talks between Russia and the Ukraine
- The GBP/NZD is a great way for experienced forex traders to diversify their portfolios
- AUD/NZD - Over the past month this pair has seen solid gains, the AUD has been strengthening continually
How Much More Can the EUR/USD value Fall?
The lack of growth and increasing inflation is putting pressure on the EURO, in addition the ongoing Ukraine-Russia conflict and the energy crisis coming with it is not helping the EURO’s current situation. Due to these factors, the EURO has been losing ground over the USD over the last month, with the factors causing the depreciation not being an easy fix, perhaps we will see the EURO depreciate more in the coming days or weeks. In late March early April, the EURO gained in value as a result of the peace talks between Russia and the Ukraine, after no agreement was reached, the EURO lost all its gains and more. Current market sentiment for this major currency pair is bearish.
EUR/USD Price Chart
Is the GBP Strengthening causing issues for the EURO, the EUR/GBP currency pairs value is falling.
GBP is Strengthening against the EURO and the current market sentiment is Bearish. We see the same peak in the graph below that is prominent in the EUR/USD graph, this gain also came during a period of peace talks between Russia and the Ukraine. The GBP is strengthening amidst the Bank of England decision to increase treasury yields in an attempt to fight against inflation.
EUR/GBP Price Chart
GBP/NZD as a Volatile pair
The GBP/NZD is a great way for experienced forex traders to diversify their portfolios. This currency pair is prone to volatility due to its heavy reliance on both economies' economic health. The Bank of England and the Reserve Bank of New Zealand play a major role in the value of this pair when they implement monetary policies to fight inflation. Given the current market conditions over the past month, this pair has seen it all, a decrease followed by an increase, the increase indicating that the GBP is strengthening. Perhaps this increase has come inlight of the interest rate increases implemented in the UK to fight inflation.
GBP/NZD Price Chart
AUD/NZD Economies affected by commodities performing well.
Both of the economies in this currency pair are heavily dependent on the exporting of commodities. Over the past month this pair has seen solid gains, the AUD has been strengthening continually.
AUD/NZD Price Chart
Sources: Finance.yahoo.com, dailyfx.com
