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

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

Summary:

  • Between the Russia Ukraine war and the hawkish Fed, the EUR is battling to recover.
  • Negative global investor sentiment is causing the GBP to struggle even more.
  • EUR continues to strengthen against the CHF.
  • GBP/JPY currency pair.

The possibility of a recession in the EU looms.

Since the market opened on Monday, the US Dollar has strengthened almost a further 0.5% against the Euro. Investor confidence in the Euro has plummeted as some investors believe that the Euro will eventually end up level with the US Dollar, this comes as Russia's attack on Ukraine continues and the EU oil embargo on Russia. Investors are concerned over the possibility of a recession in the European Union. In addition the hawkish fed increasing interest rates in their attempt to fight inflation is causing investors to turn from the EUR, which is further driving the price down.

(EUR/USD) US Dollar Continues To Trump the EUR, (EUR/GBP)(GBP/JPY) Pound Sterling Unlikely To Recover Anytime Soon - 1

EUR/USD Price Chart


 

Read next: (EUR/USD) All Eyes On The US Bureau Of Labour Statistics’ Results Due On Friday, (EUR/GBP) Bleak Economic Outlook For the UK Sends GBP Spiralling - Good Morning Forex! 


 

EUR showing strength against the GBP

Since the market opened on Monday, the EUR has strengthened against the GBP. The weakening of the pound sterling to the EUR comes after the Bank of Englands (BoEs) cautious interest rate hike in the midst of negative global investor sentiment. However, market sentiment for this currency pair is showing mixed signals. According to poundsterlinglive.com, any near future strengthening in the GBP is likely to be short lived.

(EUR/USD) US Dollar Continues To Trump the EUR, (EUR/GBP)(GBP/JPY) Pound Sterling Unlikely To Recover Anytime Soon - 2

EUR/GBP Price Chart

CHF losing more ground to the EUR

On Monday the market sentiment for the EUR/CHF currency pair was reflecting a bullish signal. With the Swiss National Bank (SNB) refusing to tighten their monetary policy, the EUR has been strengthening against the CHF over the past month and will likely continue to do so.

(EUR/USD) US Dollar Continues To Trump the EUR, (EUR/GBP)(GBP/JPY) Pound Sterling Unlikely To Recover Anytime Soon - 3

EUR/CHF Price Chart

Pound Sterling attempts recovery against the JPY

Despite the lack of investor confidence in the Pound Sterling, the GBP has still strengthened against the JPY on Monday, with market sentiment showing bullish signals for the future. The strengthening of the GBP has been very small. The positive price change comes in an attempted recovery after the Yen strengthened against the Pound Sterling last week amidst the BoEs announcements.

(EUR/USD) US Dollar Continues To Trump the EUR, (EUR/GBP)(GBP/JPY) Pound Sterling Unlikely To Recover Anytime Soon - 4

GBP/JPY Price Chart


 

Read next: (EUR/USD) ECB Reveals The Possibility Of Interest Rate Increases In July, Negative Investor Sentiment Towards The GBP, Investor Sentiment Turns Bullish For The AUD/JPY Pair - Good Morning Forex! 


 

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

Rebecca Duthie

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.