Eurozone Inflation Data Offering Euro Support (EUR/USD, EUR/GBP), SNB 0.5% Interest Rate Hike Bombshell (EUR/CHF), BoJ Left Monetary Policy Unchanged (USD/JPY)

Summary:

• Investor eyes are on the Federal Reserve's chairperson Jerome Powell and the industrial production numbers.
• The inflation data for Japan is due to be released next Thursday.
• EUR/CHF turns bullish.
• BoE interest rate hike.

Wells Fargo predicts US recession in 2023

The market is signalling mixed market sentiment for this currency pair. Eurozone core inflation came in at 3.8% for the month of May which offered the Euro support post-release. On the US side, all investor eyes are on the Federal Reserve's chairperson Jerome Powell and the industrial production numbers which could affect this currency pair.

Economists at U.S. bank Wells Fargo predict a recession for 2023 in the U.S is more likely than not as the Fed continues to succeed in slowing economic growth to the extent that inflation declines.

                                                                                                        EUR/USD Price Chart

Pound sterling strengthened by future prospects

The market is signalling mixed market sentiment for this currency pair. The Bank of England (BoE) raised their interest rates by 25bps, which has offered  the Pound sterling support. There are increased expectations regarding a 50bps interest rate from the BoE in August.

                                                                                                        EUR/GBP Price Chart

SNB bombshell

The market is signalling bearish market sentiment for this currency pair. Swiss Franc found support in the wake of the Swiss National Bank’s surprise 0.5% interest rate hike. The SNB is well known for their unconventional policy changes, their monetary policy tightening offered the CHF support against the USD, EUR and other currency counterparts.

                                                                                                        EUR/CHF Price Chart

Bank of Japan left monetary policy unchanged.

The market is signalling bearish market sentiment for this currency pair. The US Dollar has been generally under pressure however, this is not the case with the USD/JPY as the Bank of Japan left monetary policy unchanged. The inflation data for Japan is due to be released next Thursday.

                                                                                            USD/JPY Price Chart

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