Forex Currency Pairs: EUR/USD, EUR/GBP, GBP/CAD
Aa
Share
Summary:
- Euro gained on the USD.
- Markets are anticipating disappointment from the BoE’s next interest rate hike.
- Canada proving its resilience.
EUR/USD Currency pair
The market is reflecting bullish signals for this currency pair. The Euro strengthened against the US Dollar on Monday ahead of U.S economic data which could potentially negatively impact the Dollar further. The euro was under pressure across the board last week as a result of the markets focus on decreasing European gas supplies, which briefly increased prices and prompted the European Union to approve a rationing plan that might further harm continental economies throughout the winter.
EUR/USD Price Chart
Pound sterling at risk of insufficient hawkish MPC meeting sentiment
The market is reflecting mixed signals for this currency pair. The market is anticipating the risk of disappointment for the upcoming Bank of England’s (BoE) policy update on Thursday. RBC Capital group believes that even if the MPC delivers the widely expected 50 basis point interest rate hike there is a danger to the pound that the meeting minutes are not sufficiently hawkish.
EUR/GBP Price Chart
Canadian Economy proving its resilience
Last week, the Pound to Canadian Dollar exchange rate touched one-month highs, but if the U.S. Dollar remains weak or the Bank of England (BoE) surprises to the upside of market expectations this Thursday, there may be a chance for it to go closer to the 1.57 handle in the days to come. Last Friday, after GDP figures showed that the Canadian economy was more resilient than financial markets and the Bank of Canada (BoC) had anticipated for the month of May, the Canadian dollar briefly increased against the pound and a few other currencies, which could have implications for future interest rates.
GBP/CAD Price Chart
Sources: finance.yahoo.com, poundsterlinglive.com, dailyfx.com
