- The ECB turning hawkish is causing the Euro to strengthen.
- Disappointing PMI data caused the GBP to weaken.
- Hawkish SNB offers CHF support.
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.
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.
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).
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.
AUD/JPY Price Chart
Sources: finance.yahoo.com, dailyfx.com, poundsterlinglive.com