(EUR/USD) German Inflation Meets Forecasts, Pound Sterling Continues To Weaken (EUR/GBP, GBP/USD), (EUR/JPY) Japanese Yen Strengthens As Investors Seek Safe-Haven Assets - Good Morning Forex!

Can Japanese Yen Finally Go Up!? US Dollar To Japanese Yen (USD/JPY) – Head and shoulders breakout? | Oanda

Summary:

  • US Dollar sentiment awaits CPI report.
  • EUR continues to strengthen against the Pound Sterling.
  • JPY safe-haven is attractive to investors.

Read next: (EUR/USD) Wall Street Tanks, Allowing the Euro To Slightly Recover, (EUR/GBP) Goldman Sachs Betting Against GBP, JPY Gets The Better Of The US Dollar And EUR - Good Morning Forex! 

EUR gains slightly on the US Dollar

For the trading day on wednesday, the EUR/USD currency pair is reflecting mixed market signals. The Euro remained stable today after Germany announced their April inflation amount was 7.4%, which was inline with forecasts. The German announcements have investors hoping the European Central Bank (ECB) comments today will come with a more hawkish tone. The market sentiment remains mixed as investors await the U.S CPI report due later today.

(EUR/USD) German Inflation Meets Forecasts, Pound Sterling Continues To Weaken (EUR/GBP, GBP/USD), (EUR/JPY) Japanese Yen Strengthens As Investors Seek Safe-Haven Assets - 1

EUR/USD Price Chart

GBP not seeing price relief against the Euro

Market sentiment for this currency pair is reflecting bullish signals. Investors are tending to go net long on this currency pair as they expect the Euro to continue to strengthen. The Pound sterling value does not seem to be receiving any relief from its current price fall. Despite the Bank of Englands (BoE) 1% increase in interest rates in May, the other economic forecasts made spooked investors away from the currency.

(EUR/USD) German Inflation Meets Forecasts, Pound Sterling Continues To Weaken (EUR/GBP, GBP/USD), (EUR/JPY) Japanese Yen Strengthens As Investors Seek Safe-Haven Assets - 2

EUR/GBP Price Chart

JPY safe-haven currency becomes more attractive

The market is reflecting bearish signals for this currency pair. As the adverse wider economic conditions continue, investors are turning away from riskier assets, the Japanese Yen is considered a safe-haven currency, making it an attractive investment for risk averse investors. Hence, the investor sentiment is driving the price of the JPY upwards and therefore the price of this currency pair downwards.

(EUR/USD) German Inflation Meets Forecasts, Pound Sterling Continues To Weaken (EUR/GBP, GBP/USD), (EUR/JPY) Japanese Yen Strengthens As Investors Seek Safe-Haven Assets - 3

EUR/JPY Price Chart

Bearish sentiment for the Pound Sterling continues

The market is reflecting bearish signals for this currency pair. The USD continues to get stronger and the GBP continues to weaken in the overall market. The GBP has seen some relief against the USD on Wednesday, but the longevity of this trend is unlikely.

(EUR/USD) German Inflation Meets Forecasts, Pound Sterling Continues To Weaken (EUR/GBP, GBP/USD), (EUR/JPY) Japanese Yen Strengthens As Investors Seek Safe-Haven Assets - 4

GBP/USD Price Chart

Read next: (EUR/USD) US Dollar Continues To Trump the EUR, (EUR/GBP)(GBP/JPY) Pound Sterling Unlikely To Recover Anytime Soon. 

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

Can Japanese Yen Finally Go Up!? US Dollar To Japanese Yen (USD/JPY) – Head and shoulders breakout? | Oanda

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.