BoE Expected to Raise Yields, US Dollar Strengthens across the board

Summary:

USD Trumps all other currencies on the forex market today.
SNB Sticks to loose monetary policy.
BoE expected to raise treasury yields.

EUR weakens further over the weekend.

Since the market opened today the EURO has weakened against the USD. The USD strengthening comes with expectations of the hawkish Fed pushing U.S yields higher in May, this comes in the fight against the highest inflation the US has seen in 40 years. In addition, the European Central Bank is not expected to increase yields until their Asset Purchasing Program (APP) comes to a close. The current market sentiment is mixed for this major currency pair. BoE Expected to Raise Yields, US Dollar Strengthens across the board - Good Morning Forex - 1 EUR/USD Price Chart

Mixed market sentiment for EUR/GBP.

GBP weakens against the EURO today. The Eurozone and Germany are expected to announce their GDP figures this week which could likely improve investor sentiment in the EURO. The market sentiment for this currency pair is mixed, this comes as the lockdowns in China and the Russia-Ukraine conflict are current aspects that affect both of these currencies.

BoE Expected to Raise Yields, US Dollar Strengthens across the board - Good Morning Forex - 2

EUR/GBP Price Chart

Swiss National Bank Sticks to their loose monetary policy.

The USD strengthening against the CHF comes in anticipation of the Fed further increasing U.S yields in May. The Swiss National Bank (SNB) is not budging on their loose monetary policy amidst beliefs that this period of high inflation is temporary, causing the Swiss Franc to weaken.

BoE Expected to Raise Yields, US Dollar Strengthens across the board - Good Morning Forex - 3

USD/CHF Price Chart

Bank of England (BoE) expected to raise yields.

Since the market opened this morning, the market sentiment for this currency pair is bullish. Although the price is decreasing, the bullish sentiment comes with expectations that the Bank of England (BoE) will announce an increase in treasury yields by 25 basis points at Thursday's announcements. The Fed is also expected to raise yields, this is causing the price to show volatility.

BoE Expected to Raise Yields, US Dollar Strengthens across the board - Good Morning Forex - 4