Summary:

• G20 summit and Fed meeting minutes.
• Both the Euro and the GBP have remained under pressure from the incredibly strong US Dollar.
• Cost-of-living-squeeze in Japan.

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USD Could strengthen further in the coming days

The market is reflecting mixed signals for this currency pair. The market outlook for the US Dollar seems bullish going forward into the coming days as the Federal reserve minutes are released and the G20 summit. If the Fed minutes reveal a hawkish attitude that surpasses market expectations, the US Dollar could be pushed even higher and could increase the greenback’s rising yield advantage against G10 and emerging market counterparts.

EUR/USD Price Chart

GBP & Euro Under pressure

The market is reflecting bullish signals for this currency pair. Both the Euro and the GBP have remained under pressure from the incredibly strong US Dollar, the negatives for the Euro are well-known across the markets and could likely be exacerbated by two events in July. For the pound sterling, politics is at the forefront of talking in the media, however, from a traders perspective, the pound has been optimistic in terms of being affected by the current difficult situation. It seems that this is the beginning of the end for Prime Minister Boris Johnson, although the current backdrop that plagues the Pound remains unaltered. This has been evidenced by this morning’s soft construction PMI data, while comments made by BoE Chief Economist Pill were not exactly in favour of a larger hike in the Bank rate.

EUR/GBP Price Chart

USD dominating JPY

The market is reflecting bullish signals for this currency pair. Inflation is currently showing signs of becoming more politically based in Japan in the wake of the continuing cost-of-living squeeze. Whilst the market awaits FOMC meeting minutes which could give the US Dollar more support, the rising cost of living in Japan continues to squeeze domestic households' income ahead of Japan's upper house election on Sunday.

USD/JPY Price Chart

EUR/JPY currency pair

The market is reflecting mixed signals for this currency pair. The EUR/JPY currency pair remains at lofty level, however, the trend is being questioned.

EUR/JPY Price Chart

Sources: finance.yahoo.com, dailyfx.com, poundsterlinglive.com