- 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 Price Chart
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/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/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.
GBP/JPY Price Chart
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Sources: poundsterlinglive.com, finance.yahoo.com, dailyfx.com