Japanese Yen (JPY) Weakens Against The Dollar, USD/CAD Stable And The Inevitable Strengthening Of The USD, IMF/World Bank Events

US Close – ISM hits 2-year low, Au Revoir 3.00% on recession worries, Choppy waters for Stocks, Commodity Markets tired of softening, Bitcoin tests $18K waters

Summary:

  • Analysis of; EUR/USD, EUR/GBP, USD/CAD, USD/JPY.
  • Japanese Yen weakens as Bank of Japan fights against increasing Treasury Yields.
  • USD Strengthening as the Fed remains hawkish.
  • The EUR and GBP future prices awaiting the IMF and World Bank Events later this week.

EUR/USD, Strengthening USD putting pressure on the EUR.

EUR/USD market sentiment is currently reflected as bearish for this currency pair as the graph shows the declining price over the past week. In the past weeks, the Euro has been underperforming as a result of the Russia-Ukraine war causing fears of Eurozone stagflation. The ECB is stuck at the moment with increasing inflation and slow growth, the likelihood of the ECB’s capacity to match the aggressiveness of the Fed is low. Perhaps toward the end of the week we will see the EURO bounce against the USD inlight of the talks at the IMF/World bank events.

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EUR/USD Price Chart


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The Value EUR/GBP Awaits Changes in Light of Major Appointments This Week

The Euro seems to be strengthening against the GBP after it depreciated late last week. Since the market opened this morning, the investor sentiment for this currency pair has become bullish. There is suspicion that the sharp fall in the value of the EUR/GBP last Thursday may have come out of China in an attempt to stop any more strengthening in the Renminbi. The future value of this currency pair is important to watch in the coming days, with major appointments on talks about finances coming up, especially both the ECB and BoE governors talks at the IMF/World Bank events later this week.

EUR To GBP | 1 EUR To GBP

EUR/GBP Price Chart

USD/CAD Currency Pair holding Stable amidst Current Market conditions

The USD/CAD currency pair price is remaining relatively stable given the current risk-averse market sentiment. The USD/CAD currency pair is considered to be volatile, both the CAD and USD reacts quickly to the release of economic data and current market conditions. Despite investors being risk averse, the market sentiment seems to be bullish for the USD inlight of the Fed's hawkish attitude, growing concerns on inflation increases and US rising benchmark yields all leading to a strengthening USD.

USD To CAD Chart

USD strengthening against the Japanese Yen

The USD strengthened against the Yen this past week as a result of the increasing US Treasury yields and the expectation of positive economic data. The price of this currency pair reached the highest since March 2002. The Bank of Japan has been working hard to keep the Treasury yield below 0.25%, the opposite approach the Fed has taken in the fight against inflation, causing the yen to weaken. The Japanese finance minister raises concerns on the damaging effect the weakening yen could have on the weakening economy


For you: Forex Rates: British Pound (GBP) Strengthening? Weak (EUR) Euro? GBP, NZD And AUD Supported By Monetary Policy?


 

IMF/World Bank events, JPY weakens against the Dollar, USD/CAD stable and the inevitable Strengthening of the USD - 4

USD/JPY Price Chart

Sources: Finance.yahoo.com, Teletrade.eu.

US Close – ISM hits 2-year low, Au Revoir 3.00% on recession worries, Choppy waters for Stocks, Commodity Markets tired of softening, Bitcoin tests $18K waters

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.