Hawkish ECB Bodes Well For The Euro, UK PMI Data Disappoints (EUR/GBP), Hawkish SNB Offers Swiss Franc Still Support (USD/CHF), AUD/JPY - Good Morning Forex!

The Euro Will Strengthen, But Questions Remain About What To Do Next

Summary:

  • The ECB turning hawkish is causing the Euro to strengthen.
  • Disappointing PMI data caused the GBP to weaken.
  • Hawkish SNB offers CHF support.

Read next: ECB Offering The Euro Support (EUR/USD), Strengthening Of The Renminbi Supporting The EUR and GBP, SNB Turns Hawkish (EUR/CHF) - Good Morning Forex! 

Euro trumps US Dollar

Market sentiment for this currency pair is reflecting bullish signals, which means investors are confident in the Euro. The strengthening of the Euro comes after the European Central Bank’s (ECB) President Christine Lagarde confirmed market expectations that the ECB would raise interest rates in July.

The hawkish sentiment of the ECB has instilled investor confidence in the Euro, despite the continuing hawkish Fed, investors are still turning to the Euro due to concerns around the US economy falling into a recession.

Hawkish ECB Bodes Well For EUR/USD, UK PMI Data Disappoints (EUR/GBP), Hawkish SNB Offers Swiss Franc Still Support (USD/CHF), AUD/JPY - Good Morning Forex! - 1 EUR/USD Price Chart

Pound Sterling Weakens after PMI data release

The Release of PMI data showed that the UK economy was close to contracting in May, the results came in well below expectations, a figure that is out of the ordinary. The Pound Sterling weakened based on this news and JP Morgan has flagged the UK economy as the “poster child” for stagflation. The market sentiment for the EUR/GBP currency pair is reflecting bullish signals.

Hawkish ECB Bodes Well For EUR/USD, UK PMI Data Disappoints (EUR/GBP), Hawkish SNB Offers Swiss Franc Still Support (USD/CHF), AUD/JPY - Good Morning Forex! - 2 EUR/GBP Price Chart

Swiss Franc continues to trump US Dollar

Market sentiment for this currency pair is reflecting a bearish sentiment. Late last week and this week the Swiss Franc began strengthening against the US Dollar, this comes in the wake of both the concerns around the slowing US economy and in conjunction the hawkish attitude from the Swiss National Bank (SNB).

Hawkish ECB Bodes Well For EUR/USD, UK PMI Data Disappoints (EUR/GBP), Hawkish SNB Offers Swiss Franc Still Support (USD/CHF), AUD/JPY - Good Morning Forex! - 3 USD/CHF Price Chart

AUD/JPY currency pair

Market sentiment for this currency pair is reflecting bullish signals. This currency pair has experienced a lot of volatility over the past week. In addition there is a temporary pause in the growth of the JPY as investors are starting to be less weary about taking on some risk.

Hawkish ECB Bodes Well For EUR/USD, UK PMI Data Disappoints (EUR/GBP), Hawkish SNB Offers Swiss Franc Still Support (USD/CHF), AUD/JPY - Good Morning Forex! - 4 AUD/JPY Price Chart

Read next: (DJIA) Dow Jones Index Rising, Investors Confidence In The Euro Is Looking Bullish As ECB Confirm Interest Rate Increases 

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

The Euro Will Strengthen, But Questions Remain About What To Do Next

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.