US Dollar Softening Due To Recession Fears (EUR/USD), Is A 50bps Interest Rate Hike Due To Kick Off The ECB Interest Rate Hiking Cycle ? (EUR/GBP), AUD Recovering As China Reopens Their Economy
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Summary:
- The Fed remains fixated on crushing inflation.
- Martins Kazaks announced that it was worth looking at a 50 basis point hike.
- The AUD is benefitting from the reopening of the Chinese economy.
ECB Forum Starts on Tuesday
The market is reflecting bullish signals for this currency pair. The US Dollar softens in the wake of concerns around a looming recession that comes in the wake of a slowing economy on rising interest rates. Despite these concerns the Federal Reserve bank has made it clear that their focus is on containing surging inflation.
The Euro has held onto Monday gains, the European Central Bank (ECB) will get under way today.
EUR/USD Price Chart
ECB has a busy week for interest rate policy
The market is reflecting bullish signals for this currency pair. It is looking likely that the European Central Bank (ECB) is due to start its interest rate hiking cycle with a 50 basis point hike. After Martins Kazaks announced that it was worth looking at a 50 basis point hike the Euro strengthened against both the pound sterling and the US Dollar. This trading week is a busy one for the ECB interest rate policy as central bankers descend on Sintra, Portugal for the ECBs annual central banking get-together.
EUR/GBP Price Chart
AUD/JPY currency pair
The market is reflecting mixed signals for this currency pair. As China comes out of its lockdowns, thus, boosting market expectations of a recovery in the second largest economy in the world and Australia’s largest export market. The Australian Dollar has strengthened in the wake of the news.
Due to equities holding onto recent gains and the Japanese Yen’s safe-haven status, the currency is underperforming.
AUD/JPY Price Chart
GBP/JPY currency pair
The market is reflecting mixed signals for this currency pair. The GBP/JPY currency pair is drifting higher as we near to the month end. It is natural for the Japanese Yen to underperform during this time as equities are holding onto their gains due to its safe-haven status.
GBP/JPY Price Chart
Sources: finance.yahoo.com, dailyfx.com, poundsterlinglive.com
