EURUSD GBPUSD Forecast: Outlook recap 19 June
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EUR/USD Forecast: Fearful of the Fed after being downed by Draghi
The Draghi show has stolen the show from the Fed. EUR/USD has been struggling to recover from the dovish words of European Central Bank President Mario Draghi. The central banker has said that if the outlook does not improve, the ECB will need to take additional measures such as cutting interest rates – sending the euro plunging.
The Frankfurt-based institution will analyze the inflation prospects in the coming weeks and prepare a plan. Draghi steps down in around four months and has a chance to leave his mark.
GBP/USD Forecast: Three short-lived reasons to rise that may preclude the next fall
Why did GBP/USD rise? Here are three reasons accompanied by
1) Politics: Corbyn nearing a second referendum but Johnson increasing his lead
Opposition leader Jeremy Corbyn has reportedly been moving toward supporting a second EU Referendum. This is not the first time that the media has been touting these reports, but perhaps growing pressure has finally moved the arguably euro-skeptic leader toward this view.
2) OK inflation but the BOE may drop its hawkish bias
Britain's Consumer Price Index for May stood at 2% – exactly the Bank of England's target. It did not fall below the mark as some had feared. The publication has sent GBP/USD higher.
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