In the Forex Weekly Forecasts segment, we provide critical news and information which helps you to seize the opportunity in the financial market.
EUR/USD – Euro US Dollar
The Euro edged marginally higher on Monday morning to capitalize on the US holiday. The top traded currency pair met with a fresh demand near the 1.04160 zone in the European session. However, the upside remains limited due to the weakening global economic outlook and one can expect a retreat in the next few trading sessions.
From a fundamental perspective, the EUR/USD is facing major hurdles on the inflation front. The Eurozone inflation is expected to rise in the coming months due to ongoing war and supply shortages. Therefore, the near-term outlook for the EUR/USD is neutral to bearish.
GBP/USD – British Pound US Dollar
The British pound started the week with a bullish note and is up by some 0.30% on Monday morning in Asia. There was a break below the major psychological support level at the 1.2300 mark in the last week and GBP/USD fell 1.51% to trade at the 1.2000 level by the end of the week.
Meanwhile, the dollar index is trading with some modest losses amid the US holidays on the account of Independence Day. The momentum indicators are flashing bearish signals therefore one must look for potential selling opportunities in GBP/USD on a major bounce.
AUD/USD – Australian Dollar US Dollar
The Australian dollar found some buyers near the 0.6800 level and is on the way to recovering the Friday losses. The AUD/USD fell 1.83% in the last week on slow economic growth and recession fears weighing on commodities.
According to financial analysts, a recession in the United States and the eurozone will have a substantial impact on the demand for commodities. As a result of this, the price action of AUD/USD is exhibiting a lot of noisy behavior. The main trend is down on the daily swing chart and one can expect the prices to go lower ahead of the interest rate hike announcement from the US Federal Reserve.