ECB Upcoming Policy Rate Decision Offers Euro Support (EUR/USD, EUR/GBP), Higher Than Expected NZ CPI Inflation Data (GBP/NZD), (USD/CAD)

The EUR/USD Pair Could Bring Back The Bulls Into Action Again

Summary:

  • EUR recovering against the USD.
  • ECB interest rate decision due on Thursday.
  • UK economic data to be released this week.
  • NZ CPI inflation rose 1.7%.

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Euro attempting to recover against the USD

The market is reflecting bullish signals for this currency pair. The Euro has been attempting to recover against the US Dollar during the Monday trading day and could continue to rise in the coming days if all goes well for Eurozone economies on Thursday after the European Central Bank (ECB) announces their policy decision. In addition there is still market uncertainty around whether Russian gas flows will continue through the Noord Stream 1 after its maintenance ends on July 21st, this remains one of the greatest risks to the Euro.

ECB Upcoming Policy Rate Decision Offers Euro Support (EUR/USD, EUR/GBP), Higher Than Expected NZ CPI Inflation Data (GBP/NZD), (USD/CAD) - 1 EUR/USD Price Chart

Pound sterling could weaken more against the EUR

The market is reflecting bullish signals for this currency pair. The EUR/GBP currency pair could strengthen more in the coming days as the market awaits the ECB’s interest rate decision. There is however, some UK economic data that is due to be released which could offer the pound sterling support against the Euro and other currencies.

ECB Upcoming Policy Rate Decision Offers Euro Support (EUR/USD, EUR/GBP), Higher Than Expected NZ CPI Inflation Data (GBP/NZD), (USD/CAD) - 2 EUR/GBP Price Chart

NZ inflation data weakening the NZD.

A rise in New Zealand inflation data shocked investors and raised bets for a faster and more hawkish response from the Reserve Bank of New Zealand (RBNZ). However, fears of a ‘hard landing’ for the Kiwi economy have grown as investors are fearing that the combination of rising interest rates and high inflation will negatively impact economic expansion, which may aid in explaining the NDZ’s negative reaction to the data.

According to Stats NZ, CPI inflation in NEw Zealand rose 1.7% quarter on quarter, surpassing the markets expectation of a 1.5% increase/

ECB Upcoming Policy Rate Decision Offers Euro Support (EUR/USD, EUR/GBP), Higher Than Expected NZ CPI Inflation Data (GBP/NZD), (USD/CAD) - 3 GBP/NZD Price Chart

USD/CAD

The market is reflecting bearish signals for this currency pair. The Canadian Dollar has continued its rally against the US Dollar after the Bank of Canada (BoC) surprised markets last Wednesday with a 100 basis point hike in interest rates.

ECB Upcoming Policy Rate Decision Offers Euro Support (EUR/USD, EUR/GBP), Higher Than Expected NZ CPI Inflation Data (GBP/NZD), (USD/CAD) - 4 USD/CAD Price Chart

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

 

The EUR/USD Pair Could Bring Back The Bulls Into Action Again

Rebecca Duthie

Remote Editor and writer Intern
FXMAG.COM

Rebecca has a bachelors degree in Investment Management, a Post Graduate Diploma in Financial Planning and is currently enrolled in a Masters program in International Management with a Specialization in International Finance.