Summary:

• The Euro continues to be one of the more susceptible currencies as many headwinds build up.
• Will Russia resume gas supply to Noord Stream?
• Will the BoC policy decision offer CAD support?
• BoJ would do whatever is necessary to help the economy grow.

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US Dollar continues to strengthen across the board

The market is reflecting mixed signals for this currency pair. On Monday the Noord Stream, Germany’s biggest pipeline closed for annual maintenance until the 21st July. The maintenance time period has increased speculation on whether or not Russia will resume gas flows after the maintenance has been completed. The Euro continues to be one of the more susceptible currencies as many headwinds build up. The European Central Bank (ECB) is still on track to raise interest rates (at least 25 bps) at their next meeting later on in July.

The US Dollar continues to rise across the board, and investor attention will be aimed in the direction of the US CPI inflation data release for June on Wednesday.

EUR/USD Price Chart

EUR/GBP mixed sentiment

The market is reflecting mixed signals for this currency pair. The pound sterling will continue to be affected by external events whilst politics grabs headlines. The Euro continues to be negatively affected by a combination of events. One of the main events being whether or not Russia will turn the taps back on for gas supplies through the Noord Stream once the maintenance is over, if they do not, the possibility of a recession in the Euro area will increase largely.

EUR/GBP Price Chart

GBP/CAD hovers around 10-year lows

The markets are keeping alert as they await the Bank of Canada’s (BoC) policy decision on Wednesday. Although the GBP/CAD currency pair hovers near 10 year lows, both currencies remained little changed on Monday and were both middle-of-the road performers amongst major currencies.

GBP/CAD Price Chart

BoJ representative speaks

The market is reflecting mixed sentiment for this currency pair. A Bank of Japan (BoJ) representative warned the market that the current economic outlook remains uncertain due to the rising commodity prices and that the BoJ would do whatever is necessary to help the economy grow. The same representative also said that Japan’s financial system is robust, the economy is starting to improve and that the central bank would keep interest rates stable at the current or lower levels.

USD/JPY Price Chart

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