Summary:

• The US Dollar strengthens further.
• EUR/GBP investor sentiment has not changed regardless of the BoE’s expected announcement on interest rates.
• CHF weakens due to SNB dovish approach to monetary policy.
• A short look into the ZAR.

The Euro has spent the past week trying to recover against the USD.

Over the past week the Euro has been weakening against the USD. This comes from the continuous strengthening of the US Dollar, the hawkish Federal Reserve Bank (Fed) ended last week announcing they would push interest rates up for the 7th consecutive week in their fight against inflation. The Euro has been struggling to fight against the strengthening USD, the European Central Bank (ECB) has not tightened their monetary policy to fight inflation, because of the risk averse sentiment of investors in the current market, many are fleeing the Euro and turning to the stronger USD. However, since the market opened this morning, the EUR has slightly strengthened against the USD, whether or not this will continue is uncertain, the market sentiment is mixed for this currency pair.

EUR/USD Price Chart

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GBP Weakens against the EURO during the past trading week.

Since the market opened this morning, market sentiment for this currency pair is bullish, this means that investors are expecting the EUR to strengthen against the GBP. Over the past week, the overall trend is showing the EURO strengthening against the GBP, however, the rise of the EUR has not been smooth, the chart below shows the volatility this currency pair has felt this week. The Bank of England (BoE) is expected to announce a rise in interest rates on Thursday in the fight against inflation, perhaps the GBP will start to see some strengthening against the EURO.

EUR/GBP Price Chart

Swiss National Bank

As of the market open this morning the CHF has strengthened against the USD, however, the market sentiment for this currency pair is showing bullish signals. Over the past week the USD has been strengthening consistently against the CHF. As the Fed continues their hawkish approach to the fight against inflation through tightening monetary policy, the US Dollar continues to trump most of its currency counterparts. The Swiss National Bank (SNB) believes this rise in inflation is only temporary and continues to stand by their loose monetary policy stance.

USD/CHF Price Chart

South African Rand (ZAR) weakens against the USD.

The ZAR is the National Currency of South Africa and is used by Swaziland, Namibia and Lesotho, in general the ZAR tends to strengthen when investors are willing to take on more risk in developing countries' economies. Given the current economic pullback, the ZAR has been weakening against the current aggressively strengthening US Dollar.

USD/ZAR Price Chart

Read next: EUR/USD Drops Below 1.07?!, GBP Weakens Against the EUR For The Third Consecutive Month, SNB Showing No Sign Of Tightening Monetary Policy 

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