euro inflation

Summary:

  • EU PPI inflation data caused the Euro to weaken on Wednesday.
  • Investor sentiment looks poor towards the GBP going into summer.
  • Pound Sterling recovers against the US Dollar.

Read next: Hawkish ECB Bodes Well For The Euro, UK PMI Data Disappoints (EUR/GBP), Hawkish SNB Offers Swiss Franc Still Support (USD/CHF), AUD/JPY - Good Morning Forex! 

A rise in PPI inflation data causes Euro weaken

Market sentiment is reflecting mixed signals for this currency pair. Looking at the value of the Euro in terms of PPI and CPI data: the rise in PPI inflation in the euro area reduced the Euros fair value estimate, whereas the European CPI inflation data remains close to that of the US CPI inflation. Therefore, it is the release of PPI inflation data that has caused the Euro to lose more than 0.6% to the US Dollar on Wednesday.

EUR Falls To US Dollar (EUR/USD), Pound Sterling Due To Weaken As UK Recession Looms (EUR/GBP), Market Awaits Fed Meeting Minutes (USD/CHF, GBP/USD) - 1 EUR/USD Price Chart

GBP weakens as concerns of a recession looms

The market is reflecting mixed market sentiment for this currency pair. Investors expec

Follow EUR/USD, EUR To GBP And The Rest Of EUR Pairs - Inflation In Euro Area Continues To Worry Investors After Reaching New High

Follow EUR/USD, EUR To GBP And The Rest Of EUR Pairs - Inflation In Euro Area Continues To Worry Investors After Reaching New High

Walid Koudmani Walid Koudmani 21.04.2022 12:02
Today's Euro area inflation report continued to show the alarming rate of increase in prices mainly driven from energy prices and services. The euro area annual inflation rate was 7.4% in March 2022, up from 5.9% in February and noticeably higher than when compared to a year earlier (1.3%). Stagflation scenario? While we have already seen a slight change in tone from some members of the ECB, hinting at rate hikes sooner than previously expected, today's report could further incentivize the bank to act in an attempt to avoid the increasingly likely stagflation scenario. It will be important to keep an eye on today’s speech from the ECB head Lagarde after another member of the ECB , Kazaks, stated they believe asset purchases may be terminated before Q3 2022 - much earlier than it was expected. Gold price returns to key support area ahead of central banker speeches The price of gold has seen a noticeable pullback after reaching a high of $1958 yesterday while stock markets started the day trading higher following better than expected earnings from Tesla. The precious metal has once again returned to a previous support area of and could continue to see an increase in volatility as investors await today's comments from the heads of BoE and ECB. While the ECB appears to be changing its opinion slightly on the possibility of adjusting its fiscal and monetary policy to contend with record inflation, it remains to be seen how and if Lagarde will downplay the situation in order to calm the markets. In any case, gold might see a reaction to the $1945 area once again after the price managed to rebound several times in the past.  
Investors' Concerns About The Coming Recession In The UK, Will GBP/USD Pair Reach Its Lowest Level In History?

ECB Offering The Euro Support (EUR/USD), Strengthening Of The Renminbi Supporting The EUR and GBP, SNB Turns Hawkish (EUR/CHF) - Good Morning Forex!

Rebecca Duthie Rebecca Duthie 23.05.2022 10:29
Summary: ECB offering support to the EUR, whilst easing lockdowns in China aids in the weakening US Dollar. Euro and GBP are likely to strengthen with the Renminbi. SNB and ECB hawkishness offers support to their respective currencies. GBP/CAD Read next: US Dollar Is Likely To Experience Volatility In The Coming Weeks (EUR/USD), UK Retail Data Exceeds Market Expectations (EUR/GBP), SNB Turns Hawkish Causing the CHF To Rally (EUR/CHF) - Good Morning Forex!  Easing lockdowns in China dragging down the US Dollar Market sentiment for this currency pair is reflecting bullish signals. On Monday the European Central Bank (ECB) announced that it is likely that July would be the starting period for raising interest rates. At the same time, the easing of lockdowns in China has aided in weakening the US Dollar. The trading week is full of US events along with some European Central Bank events, all of which will be watched closely. EUR/USD Price Chart Euro and GBP both showing signs of strengthening Market sentiment for this currency pair is reflecting mixed signals. The prospect of the Chinese Renminbi rebounding is likely to have a positive impact on the value of both the Pound Sterling and the Euro. In addition the market believes that the Bank of England (BoE) is likely to continue raising interest rates in the coming months along with the increased likelihood of the European Central Bank (ECB) raising the interest rates. EUR/GBP Price Chart SNB and ECB hawkishness caused mixed sentiment for this currency pair. On Thursday last week the president of the Swiss National Bank (SNB) said that they were ready to act on the rising inflation, the hawkishness of the SNB caused the Swiss Franc to rally. The potential hawkishness of the European Central Bank (ECB) is also causing the Euro to strengthen, leaving the market sentiment for this currency pair showing mixed signals. EUR/CHF Price Chart GBP rallies against the CAD The strengthening of the GBP against the CAD throughout last week has come in the wake of increasing UK government bond yields. The strengthening came in the wake of the release of UK employment data, inflation and retail data all which support further increases in the UK government bond yields. GBP/CAD Price Chart Read next: (FTSE) FTSE 100 Rallies In Response To Positive Economic Data, US Dollar Expected To See More Volatility  Sources: finance.yahoo.com, poundsterlinglive.com, dailyfx.com
Technical Information On The Euro To US Dollar Currency Pair

(DJIA) Dow Jones Index Rising, Investors Confidence In The Euro Is Looking Bullish As ECB Confirm Interest Rate Increases

Rebecca Duthie Rebecca Duthie 23.05.2022 21:56
Summary: President Joe Biden's announcement of possible easing of tariffs on goods from China fairing well for U.S stocks. Euro expected to continue strengthening. Read next: Xpeng (XPEV) Earnings Results Cause Share Price To Fall  U.S stocks showing signs of recovery The Dow Jones Index rose almost 2% during the trading day on Monday. U.S stocks recovered on Monday in the wake of investors coming-off a 7 week losing streak. The recovery comes after investors received some fresh-trade related information from the Biden Administration. On Monday President Joe Biden announced that he was considering easing tariffs on Chinese goods due to the belief that the tariffs caused financial harm on consumers and businesses. DJIA Price Chart ECB Interest rate hike is confirmed The Euro exchange rate performed well on Monday thanks to the European Central Bank's president confirming that there will be interest rate hikes in July. The Euro responded well to this information and strengthened against both the US Dollar and the Pound. Leading up to the confirmation of the rising interest rates, the Euro had been strengthening, in the wake of the interest rates being risen, investors believe that the Euro will continue to strengthen. Read next: Altcoins: Ripple Crypto - What Is Ripple (XRP)? Price Of XRP | FXMAG.COM Sources: finance.yahoo.com, poundsterlinglive.com Follow FXMAG.COM on Google News
The Euro Will Strengthen, But Questions Remain About What To Do Next

Hawkish ECB Bodes Well For The Euro, UK PMI Data Disappoints (EUR/GBP), Hawkish SNB Offers Swiss Franc Still Support (USD/CHF), AUD/JPY - Good Morning Forex!

Rebecca Duthie Rebecca Duthie 24.05.2022 13:23
Summary: The ECB turning hawkish is causing the Euro to strengthen. Disappointing PMI data caused the GBP to weaken. Hawkish SNB offers CHF support. Read next: ECB Offering The Euro Support (EUR/USD), Strengthening Of The Renminbi Supporting The EUR and GBP, SNB Turns Hawkish (EUR/CHF) - Good Morning Forex!  Euro trumps US Dollar Market sentiment for this currency pair is reflecting bullish signals, which means investors are confident in the Euro. The strengthening of the Euro comes after the European Central Bank’s (ECB) President Christine Lagarde confirmed market expectations that the ECB would raise interest rates in July. The hawkish sentiment of the ECB has instilled investor confidence in the Euro, despite the continuing hawkish Fed, investors are still turning to the Euro due to concerns around the US economy falling into a recession. EUR/USD Price Chart Pound Sterling Weakens after PMI data release The Release of PMI data showed that the UK economy was close to contracting in May, the results came in well below expectations, a figure that is out of the ordinary. The Pound Sterling weakened based on this news and JP Morgan has flagged the UK economy as the “poster child” for stagflation. The market sentiment for the EUR/GBP currency pair is reflecting bullish signals. EUR/GBP Price Chart Swiss Franc continues to trump US Dollar Market sentiment for this currency pair is reflecting a bearish sentiment. Late last week and this week the Swiss Franc began strengthening against the US Dollar, this comes in the wake of both the concerns around the slowing US economy and in conjunction the hawkish attitude from the Swiss National Bank (SNB). USD/CHF Price Chart AUD/JPY currency pair Market sentiment for this currency pair is reflecting bullish signals. This currency pair has experienced a lot of volatility over the past week. In addition there is a temporary pause in the growth of the JPY as investors are starting to be less weary about taking on some risk. AUD/JPY Price Chart Read next: (DJIA) Dow Jones Index Rising, Investors Confidence In The Euro Is Looking Bullish As ECB Confirm Interest Rate Increases  Sources: finance.yahoo.com, dailyfx.com, poundsterlinglive.com
FX Daily: Reports of sterling’s demise are exaggerated

EUR Falls To US Dollar (EUR/USD), Pound Sterling Due To Weaken As UK Recession Looms (EUR/GBP), Market Awaits Fed Meeting Minutes (USD/CHF, GBP/USD)

Rebecca Duthie Rebecca Duthie 25.05.2022 18:27
Summary: EU PPI inflation data caused the Euro to weaken on Wednesday. Investor sentiment looks poor towards the GBP going into summer. Pound Sterling recovers against the US Dollar. Read next: Hawkish ECB Bodes Well For The Euro, UK PMI Data Disappoints (EUR/GBP), Hawkish SNB Offers Swiss Franc Still Support (USD/CHF), AUD/JPY - Good Morning Forex!  A rise in PPI inflation data causes Euro weaken Market sentiment is reflecting mixed signals for this currency pair. Looking at the value of the Euro in terms of PPI and CPI data: the rise in PPI inflation in the euro area reduced the Euros fair value estimate, whereas the European CPI inflation data remains close to that of the US CPI inflation. Therefore, it is the release of PPI inflation data that has caused the Euro to lose more than 0.6% to the US Dollar on Wednesday. EUR/USD Price Chart GBP weakens as concerns of a recession looms The market is reflecting mixed market sentiment for this currency pair. Investors expect the Pound Sterling to have a tough summer period. The slowing UK economy and disappointing PMI data are both aspects that will likely cause the GBP to weaken not only against the Euro but against other currencies too. The market is defaulting to buying Euros and selling Great British Pounds in the wake of changing European Central Bank (ECB) policy. EUR/GBP Price Chart Swiss Franc The market sentiment for this currency pair is reflecting mixed market signals. During the trading week last week, the US Dollar weakened against the Swiss Franc due to the hawkish attitude shown by the Swiss National Bank (SNB) and investors desire for safe-haven assets. This sentiment has continued into the current trading week. USD/CHF Price Chart GBP recovers against the USD The GBP strengthened against the US Dollar on Wednesday as the market awaited the Federal Reserve’s latest meeting minutes. Investors are eager to see how aggressively the Fed will raise interest rates going forward in an attempt to tackle rising inflation. Investor sentiment is negative toward the US Dollar at the moment, which has given some currencies, such as the GBP, an opportunity to recover. The market sentiment for this currency pair is reflecting bullish signals. GBP/USD Price Chart Read next: ECB Offering The Euro Support (EUR/USD), Strengthening Of The Renminbi Supporting The EUR and GBP, SNB Turns Hawkish (EUR/CHF) - Good Morning Forex!  Sources: finance.yahoo.com, poundsterlinglive.com, dailyfx.com