Pound Sterling Offered Support After News That Boris Johnson Is Set To Step Down (EUR/GBP, GBP/USD), FED FOMC Meeting Minutes (EUR/USD), Japan’s Upper House Elections (USD/JPY)
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Summary:
- ECB and FOMC meeting minutes release.
- UK Prime Minister set to step down.
- GBP is little changed.
- Japan’s upper house elections.
ECB & Fed FOMC meeting minutes.
The market is reflecting bearish signals for this currency pair. The Euro has been under big pressure in the wake of global recessionary fears gripping the markets and causing its price to break below multi-decade lows. Earlier in Thursday's trading day, the Euro had managed to recover from some of the lows seen on Wednesday after the Federal Reserve's FOMC meeting minutes were released. Later on Thursday the meeting minutes of the last European Central Bank (ECB) meeting are due to be released and almost any hawkish rhetoric could benefit the Euro.
EUR/USD Price Chart
Boris Johnson set to step down
The market is reflecting mixed signals for this currency pair. Boris Johnson is set to resign in the wake of many high-profile resignations within his government in protest of Boris Johnson’s continuing leadership, the current Prime Minister is set to address the media later on Thursday. This news has aided the EUR/GBP currency pair in its downward momentum.
In addition, the Euro itself isn’t faring well amidst economic concerns, the potential for widening periphery bond spreads as the European Central Bank raises rates, and ofcourse the possibility of complications in restoring Russian gas inflows to Germany via Nord Stream 1 which is also due to undergo routine maintenance from next Monday until the 21st July.
EUR/GBP Price Chart
Strong US Dollar.
The market is reflecting mixed signals for this currency pair. The US Dollar continues to strengthen in the wake of the Fed FOMC meeting minutes released late on Wednesday, and the continuing hawkish rhetoric. The GBP is little changed in most corresponding currency pairs.
GBP/USD Price Chart
Rising cost-of-living in Japan
The market is reflecting bullish sentiment for this currency pair. The rising cost-of-living in Japan continues to squeeze domestic households' income ahead of Japan's upper house election on Sunday. The release of the Fed's FOMC meeting minutes has offered the US Dollar more support on Thursday whilst inflation is currently showing signs of becoming more politically based in Japan in the wake of the continuing cost-of-living squeeze.
USD/JPY Price Chart
Sources: finance.yahoo.com, dailyfx.com, poundsterlinglive.com
