Major Forex Pairs: EUR/USD, GBP/USD, EURGBP Affected By Interest Rates Decisions – The Week On Markets By FXMAG.COM
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Fed raised interest rate by 25bps so did Bank of England. Data shows that these events haven’t hit major Forex pairs so hard so let’s verify the theory.
EUR/USD – A ca. 1.2% Gain
The chart shows the week began without significant fluctuations until the Fed decision on March 16th. Immediately after the announcement of the key monetary policy indicator a huge declined stopped the strengthening Euro. The pair even neared the 2% gain level, but during the week has declined again slowly ending it near +1.2%.
GBP/USD – Two announcements correlation
The week hadn’t began too positively for British pound, but the following days had put GBP back on track to a ca. 1% gain after significant declines shortly after Fed and BoE decisions on accordingly Wednesday and Thursday.
EUR/GBP – A ca. 1% Increased Corrected
Naturally Fed’s announcement didn’t affect the single currency and British bound heavily, but the Bank of England’s fuelled EUR/GBP almost 1% jump which had been gradually corrected in the following days leaving the pair almost unchanged compared to the 14th March.
USD/PLN – exotic pair with interesting outlook
There’s no doubt PLN has strengthened throughout the week even if Fed announced the raise of interest rate. The stronger outlook of PLN is surely caused by the previous week’s tightening of monetary policy.
EUR/PLN – PLN gained ca. 1.5%
Global factors makes the pais with PLN the most interesting ones as another shows a significant loss of Euro To Polish zloty. The following week might bring next tempting fluctuations so let’s keep an eye on this pair.
