EUR/USD Drops Below 1.07?!, GBP Weakens Against the EUR For The Third Consecutive Month, SNB Showing No Sign Of Tightening Monetary Policy

Romanian GDP Slows Beyond Expectations: Revised Forecast and Economic Outlook

Summary:

  • The US Dollar continues to strengthen.
  • The SNB shows no intention of tightening their monetary policy to fight inflation.
  • GBP weakens amidst a slowing economy.

EURO continues to weaken against the USD.

Since the market opened today, the Euro has weakened by a further 0.15%, this continuing weakening comes as a result of strong U.S interest rates with little indication of the European Central Bank (ECB) attempting to play catch up. This interest rate differential between the United States and the Euro continues to favor the US Dollar. The likelihood of us seeing the EURO strengthen against the US Dollar will probably depend on the future decisions of the Federal Reserve. The market sentiment on this currency pair remains bearish.

EUR/USD Drops Below 1.07?!, GBP Weakens Against the EUR For The Third Consecutive Month, SNB Showing No Sign Of Tightening Monetary Policy - 1

EUR/USD Price Chart


 

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GBP Weakens against most major currencies.

As of the market open this morning market sentiment for this currency pair is showing bullish signals. The GBP continues to weaken against the Euro for the third consecutive month.

The weakening of the GBP comes in the middle of a sharp fall in the global stock markets, this is heavily impacting foreign exchange markets. In addition, the slowing of the UK economy is not helping the currency to recover. It is concerning that the GBP is weakening against most major currencies.

EUR/USD Drops Below 1.07?!, GBP Weakens Against the EUR For The Third Consecutive Month, SNB Showing No Sign Of Tightening Monetary Policy - 2

EUR/GBP Price Chart

CHF weakens against the Euro.

Market sentiment for this currency pair is showing bullish signals as the Euro strengthens against the Swiss Franc. The inflation rate in Switzerland reached a 13 year high but the Swiss National Bank (SNB) is showing no indication of swaying from their loose monetary policy to fight against this inflation.

EUR/USD Drops Below 1.07?!, GBP Weakens Against the EUR For The Third Consecutive Month, SNB Showing No Sign Of Tightening Monetary Policy - 3

EUR/CHF Price Chart

USD/CHF

The market sentiment for this currency pair is showing bearish signals since the market opened this morning. The USD has been strengthening against the CHF, this comes as a result of the hawkish Fed amidst their fight against inflation at the same time the SNB is showing no intention of increasing interest rates due to the belief that this high inflation period is temporary. In addition, the SNB said it would limit the Swiss Franc’s currency appreciation after reaching a 7 year high against the Euro after the Russia-Ukraine war.

EUR/USD Drops Below 1.07?!, GBP Weakens Against the EUR For The Third Consecutive Month, SNB Showing No Sign Of Tightening Monetary Policy - 4

USD/CHF Price Chart


 

Read next: Bitcoin Price Back on The Rise, Consumer Spending In The UK Falls In Light Of Inflation And The US Dollar Continues to Strengthen 


 

Sources: Finance.yahoo.com, dailyfx.com, tradingeconomics.com

 

Romanian GDP Slows Beyond Expectations: Revised Forecast and Economic Outlook

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.