EUR/USD reached a new cycle high around 1.25

EUR/USD

EUR/USD reached a new cycle high around 1.25. Dollar weakness persists despite the rising interest rate differential in favour of USD. Trump’s protectionist rhetoric weighted on the greenback.

EURUSD

 

EUR/GBP

EUR/GBP stays in a sideways range, roughly between 0.8700 and 0.9050. A break of the downside didn’t occur despite hawkish BoE-rhetoric as the difficult Brexit-process remains a drag on sterling.

EURGBP

 

USD/JPY

USD/JPY is the exponent of dollar weakness. The pair tests key support around 106.50. Investors seem to challenge Japanese officials as they say that current levels of the yen don’t warrant FX interventions.

USDJPY

 

EUR/CZK

EUR/CZK: the CNB hiked its policy rate from 0.5% to 0.75%. We expect two additional tightening moves during the year and a strengthening of the koruna towards EUR/CZK 25. Governor Rusnok sounded slightly dovish though after the policy meeting.

EURCZK

 

EUR/PLN

The Polish zloty lost some ground this month because of the uptick in market volatility and as the NBP downplayed normalisation expectations. Governor Glapinski delayed the expected timing of a first hike from the end of this year to next year.

EURPLN

 

EUR/HUF

EUR/HUF: The forint trades stable between 305 and 315 already for a remarkable amount of time. The MNB continues pursuing an extremely easy policy despite strong underlying growth and inflation momentum.

EURHUF

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This non-exhaustive information is based on short-term forecasts for expected developments on the financial markets. KBC Bank cannot guarantee that these forecasts will materialize and cannot be held liable in any way for direct or consequential loss arising from any use of this document or its content. The document is not intended as personalized investment advice and does not constitute a recommendation to buy, sell or hold investments described herein. Although information has been obtained from and is based upon sources KBC believes to be reliable, KBC does not guarantee the accuracy of this information, which may be incomplete or condensed. All opinions and estimates constitute a KBC judgment as of the data of the report and are subject to change without notice.