- Euro showing upside potential.
- UK economic data exceeds market expectations.
- SNB turns hawkish, which acts in favour of the CHF.
- Investors turning to JPY in times of market uncertainty.
The US Dollar is likely to experience volatility during the next trading week.
Market sentiment for this major currency pair is reflecting a bullish market sentiment. The next trading week is full of economic data releases which are likely to impact the US Dollar, on Thursday the Fed’s preferred inflation reading PCE will give the market an indication of the growing pressures in the U.S.
The Euro is also showing upside potential as investors expect the European Central Bank (ECB) will tighten their monetary policy during the summer.
EUR/USD Price Chart
UK retail data exceeds market expectations.
Market sentiment for this currency pair is showing mixed signals. The GBP saw a positive market turn around on Friday after a positive market turnaround. UK sales volume data raised by 1.4% in April following a fall of 1.2% during March. The data release exceeded the market expectation of -0.2%. The data shows that UK households are showing resilience in the current economic environment.
EUR/GBP Price Chart
CHF rallies on Friday
Market sentiment is showing bearish signals for this currency pair. On Thursday the Swiss Franc began to rally after the president of the Swiss National Bank (SNB) announced that they are ready to act on the rising inflation which is currently at 2.5%.
EUR/CHF Price Chart
GBP/JPY currency pair
Market sentiment is showing bearish signals for this currency pair. This currency pair is sensitive to risk appetite, as investors begin to turn away from risky investments, the JPY tends to strengthen due to its safe-haven asset.
GBP/JPY Price Chart
Sources: finance.yahoo.com, dailyfx.com, poundsterlinglive.com