EUR/USD is unlikely to shoot further higher from here .

EUR/USD surged to its strongest level in over six months at 1.0737 on Thursday. Nonetheless, economists at MUFG Bank expect the pair to struggle to see more gains from here.

Scope for further notable gains in EUR/GBP

“The worsening risk sentiment means EUR/USD is unlikely to shoot further higher from here. Gains for the Euro versus the higher-beta G10 currencies seems more likely. That would be consistent with market conditions turning more volatile which could be the key consequence of some of these central bank meetings this week.”

“Following the more cautious message on future rate hikes by the BoE we see scope for further notable gains in EUR/GBP. Higher EUR/GBP is also consistent with worsening risk sentiment and higher volatility when EUR tends to outperform GBP.”

EUR/USD declines toward 1.0600 amid risk aversion

EUR/USD has lost its traction and declined toward 1.0600 on Friday after having recovered toward 1.0650 with the initial reaction to dismal US PMI data. The negative shift witnessed in risk mood helps the US Dollar gather strength and weighs on the pair.


GBP/USD struggles to hold above 1.2200 as US Dollar gathers strength

GBP/USD reversed its direction and turned negative on the day near 1.2150. The sharp decline witnessed in Wall Street’s main indexes allows the US Dollar to gather strength as a safe haven against its major rivals and forces the pair to stay on the back foot.


Gold holds near  $1,790 after dismal US PMI data

Gold price edged lower after having climbed above $1,790 earlier in the session but remains on track to close the day in positive territory. The benchmark 10-year US Treasury bond yield holds above 3.5%, making it difficult for XAU/USD to gather bullish momentum.

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