(EUR/USD) US Dollar Continues To Strengthen, BoEs Inflation Forecast and Economic Outlook Due On Thursday - Good Morning Forex!
Rebecca Duthie 03.05.2022 12:22
EUR/USD breaks below 1.05.
BoE’s and Fed monetary policy decisions due on during the trading week.
GBP relying on the Fed’s quantitative tightening decisions.
EURO is under pressure.
The EURO lost more ground to the USD during the trading day on Tuesday, the price is sitting below 1.05. The first quarter of 2022 has not been positive for the EURO, with the Russia-Ukraine conflict still raging, the post-covid world, the hawkish Fed and lockdowns in China, are all putting pressure on the already weakening EURO. The market sentiment for this currency pair is mixed.
EUR/USD Price Chart
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GBP sees strength against the EUR
The GBP has strengthened against the EUR since the market opened this morning, however market sentiment is showing bullish signals. The strengthening of the GBP comes in anticipation of the Bank of Englands (BoEs) announcements due on Thursday, the market expectation is to see a hawkish BoE. If the BoE remains dovish, we could see the EURO bounce back.
EUR/GBP Price Chart
USD/CAD beats March high on Tuesday.
The USD strengthened against the CAD on Tuesday, it's a busy week for the USD, the Federal Reserve is due to announce its monetary policy decision. The market sentiment for this currency pair is showing bullish signals, however, investor sentiment and confidence could easily be swayed in the coming days.
USD/CAD Price Chart
GBP shows strength against the USD.
The Bank of Englands (BoE) monetary policy is the key driver for its small recovery against the USD, however the future of this currency pair lies in the decision of the Fed. The Fed is expected to begin the balance sheet reduction process through quantitative tightening could have adverse effects on the GBP. The market sentiment for this currency pair is bullish.
GBP/USD Price Chart
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Sources: finance.yahoo.com, dailyfx.com, poundsterlinglive.com