RedFX: What’s ahead this week? EUR/USD pushing higher for longer

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See the news here below!

Monday morning’s IFO data from Germany was weaker than expected, but the €€ made a recovery in the afternoon after some very hawkish comments from the ECB suggesting they will keep raising rates and battling inflation.

USD:

Tuesday’s 2nd tier data (Manufacturing and Housing data) will provide a backdrop to the week. Wednesday’s Durable Goods orders will be very important but all eyes will be on Thursday’s GDP data. On Thursday last week, we saw Fed Speakers suggesting that the Central Bank needs to keep hiking rates – if the rhetoric continues, the market will have to reset its expectations of peak rates in the middle of 2023. This is a key time for Fed Speakers to give forward guidance to the USD.

EUR/USD is holding above 1.1000 this morning.
A falling USD has pushed GBP/USD up to 1.2500 recently, but domestic pressures in the UK have kept a lid on further rises.

GBP

Last week saw UK Inflation remain above 10% and eth Bank of England will be having a hard time deciding whether to keep battling rising prices with higher interest rates. The discussions will be key to the path of GBP in the medium-term.

Although the UK is predicted to be the worst performer in the G7, the currency maintains strength – although GBP/EUR hovers around 1.1300. With very little data this week, GBP might find itself falling victim to other currency moves.

EUR

After continued aggressive hikes and rhetoric, the €€ is strong. There is plenty of data this week to push the currency around and possibly open up some opportunities. Wednesday’s Consumer Confidence (Germany) is followed by Thursday’s Business Climate and confidence data. Friday’s EuroGroup and EcoFin meetings might cast some more light on the medium term expectations for the shared currency.

AUD

After Monday’s ANZAC Day holiday, Wednesday’s Inflation statistics will be the highlight of the week.

JPY

The Bank of Japan meeting on Friday is followed by a statement – all JPY traders will be hanging on every word.

See the today’s RATES here below!

EUR/USD         1.1000

GBP/USD         1.2450

GBP/EUR         1.1375

EUR/CAD         1.4825

EUR/JPY          148.40