- The Euro is yet to break through parity convincingly at this point.
- Noord Stream is due to open on Thursday.
- AUD reliance on external factors weighing on the currency.
Euro supported by next week's key events
The market is reflecting bullish signals for this currency pair. Although the Euro has been attempting parity throughout the trading week, it is yet to break through convincingly at this point. Next Thursday the European Central Banks (ECB) interest rate announcement is due, corresponding with the day the Noord Stream 1 re-opens and will confirm investor expectations of whether or not gas flow will come from Russia. With political uncertainty in the mix, there is no certainty that gas flows will resume.
EUR/USD Price Chart
Pound sterling heading towards a loss against the Euro
The market is reflecting bullish signals for this currency pair. The pound sterling is heading towards a weekly loss against the Euro but has shown little differentiation over the past week. Aggressive monetary policy tightening from the Fed could mean the Bank of England (BoE) will need to keep up in order to attempt to defend the pound sterlings value.
EUR/GBP Price Chart
AUD/JPY currency pair
The market is reflecting bearish signals for this currency pair. The Australian Dollar fell in the wake of Chinese economic data indicating the Chinese economy had shrunk, living up to its reputation of being a proxy for exposure to China. The Aussie Dollar has been under pressure this week due to its reliance on external factors.
AUD/JPY Price Chart
Sources: finance.yahoo.com, dailyfx.com, poundsterlinglive.com