Russian Oil Embargo Decision Weighs on The Euro (EUR/USD, EUR/GBP), Australian GDP Data Released On Wednesday Exceeds Market Expectations (AUD/USD), Pound Sterling Takes Advantage Of The Weaker USD (GBP/USD)
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Summary:
- The Euro has lost slightly to the US Dollar on Wednesday.
- EUR/GBP reflecting bearish signals.
- AUD outperforms on Wednesday.
Pound Sterling taking advantage of the weaker USD
Expectations of a hawkish ECB remain
Market sentiment for this currency pair is reflecting mixed signals. The Euro has lost slightly to the US Dollar on Wednesday in the wake of the European Union (EU) reaching a decision on the Russian oil embargo on Tuesday. The embargo has heightened investors' fears that there may be further downward growth in the eurozone.
The EU PMI economic data released on Wednesday exceeded market expectations maintaining an expansionary stance. In addition, the expectation of a hawkish European Central Bank (ECB) turning hawkish in the third quarter of the year remains.
EUR/USD Price Chart
Investor sentiment towards the Euro has slipped
The market sentiment for this currency pair is reflecting bearish signals. In the wake of the European Union reaching a decision regarding the Russian oil embargo, investor sentiment toward the euro has slipped. In conjunction, investor sentiment toward the pound sterling has strengthened.
EUR/GBP Price Chart
AUD is Wednesdays best performing currency
Market sentiment is reflecting bullish signals for this currency pair. The Australian Dollar may have outperformed the US Dollar on Wednesday, but future policies from both the central banks could impact this currency pair. Reserve Bank of Australia (RBA) GDP data released on Wednesday exceeded market expectations, making it Wednesdays best performing currency.
AUD/USD Price Chart
Pound Sterling taking advantage of the weaker USD
Market sentiment is reflecting bullish signals for this currency pair. The pound sterling has taken advantage of the weakening USD over the past couple weeks in the wake of recession concerns.
GBP/USD Price Chart
Sources: finance.yahoo.com, dailyfx.com, poundsterlinglive.com
