The Federal Reserve eased stimulus concerns: Market News

 The market's pulse

Let's take a closer look at how these and other important events affect currency prices: 

Currencies

MARKET VIEW

Weekly changes: EURUSD -0.46%, GBPUSD -0.88%, USDJPY -0.19%, NZDUSD -0.14%

The EURUSD pair closed the week at 1.18036. Earlier that week, the price declined and tested 1.1770. The ECB will declare its monetary policy strategy this Thursday.

GBPUSD fell to 1.37613, near its multi-month low of 1.37300. Yesterday U.K. reported the most significant one-day COVID cases spread since the start of the year. Meanwhile, the BoE officials talked about reducing their asset purchase programme, but it looks like words will remain only words for now.

USDJPY finished Friday at 110.053, almost unchanged for the week. The Bank of Japan surprised no one with its inaction. Governor Haruhiko Kuroda said nothing we didn’t already know, i.e. that the Japanese economy remains in a bad state, but activity will be picking up amid vaccine progress.

The hefty inflation lifted the New Zealand dollar. The market now considers the RBNZ to be the first major central bank to raise the rate next month. Although the greenback was that firm, it erased the local currency from the current range, so the NZDUSD pair closed Friday below 0.70000 with minor weekly changes.

BULLISH TRIGGERS

The ECB will hold a meeting, and it probably will move the markets because of its hawkish tone of voice.

The BoE released relatively hawkish comments from its official last week about reducing the asset purchase programme sooner than anticipated. This Monday, the country will end all legal COVID restrictions. The BoE concluded its meeting but hasn't changed any policy settings.

BEARISH TRIGGERS

If the ECB meeting results are as non-eventful as were previous ones, the EURUSD will be under pressure. The regulator may delay announcing its hawkish steps till publishing the new summer data.

In the U.K., the focus remains on recent COVID developments in the absence of meaningful events. The Japanese currency was damaged by the BoJ decision of downgrading economic forecasts.
Subscribe to #MoneyLifeResearch #ForexSignals #BestForexSignals Live Forex Signals