EUR/USD can push back above 1.1000 on any upside in European PMIs – SocGen

FXStreet Insights Team FXStreet

The highlight this week will be central bank meetings in many parts of the world, including Japan and the Eurozone. US Gross Domestic Product (GDP) will also be in focus. Kit Juckes, Chief Global FX Strategist at Société Générale, analyzes the FX market outlook.

Complete BoJ silence could see another test of USD/JPY 150.00

This week, the US calendar starts slowly with leading indicators today; a largely ignored series nowadays, but one warning of weakness ahead. The most-watched release will be the Q4 GDP report, where the consensus call is 2%.

We also get the BoJ on Tuesday, where inaction is almost certain but a market reaction will be seen anyway. Any hint of concern about market distortion from yield curve control could trigger a sharp Yen rally, but complete silence could see another test of USD/JPY 150.00.

The Bank of Canada meets on Wednesday, and will do nothing but there too, any hints will prompt a reaction and the same will be true of the ECB on Thursday, where push-back against market pricing seems almost a done deal.

We’ll also get a look at PMI data for January, and from current depressed expectations, any upside in European PMIs can help the Euro push back above USD 1.1000. The same is true of any good news in UK data after last week’s horror show.

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD clings to daily gains near 1.3350

GBP/USD holds just in positive territory around 1.3350 on Friday as the Greenback keeps a vacillating price action. With Fed rate hike expectations easing and US markets closed for the Independence Day holiday, Cable remains on track to post solid weekly gains.

EUR/USD remains sidelined around 1.1440

EUR/USD holds on to its recent gains and consolidates around 1.1440 at the end of the week as the US Dollar lacks clear direction. In the meantime, trading conditions remain subdued, with volatility constrained by the closure of US markets for the Independence Day holiday.

Gold flirts with two-week highs, targets $4,200

Gold extends its recovery for a third straight day, advancing toward the $4,200 mark per troy ounce on Friday. The precious metal looks set to snap a four-week losing streak as softer-than-expected June US NFP data prompt investors to scale back expectations of further Fed tightening.

Crypto Today: Bitcoin, Ethereum, XRP advance amid renewed capital inflows

Bitcoin maintains its upward momentum, holding above the $61,000 mark at the time of writing on Friday. Major altcoins such as Ethereum and Ripple are also posting gains, signaling a modest uptick in market sentiment and renewed risk appetite among investors.

The Iran war failed to trigger a recession. Can the US economy keep defying expectations?

Nearly four months after the start of the Iran war, the US economy remains remarkably resilient. While the conflict initially triggered a severe disruption to global energy markets and a sharp rise in Oil prices, recent diplomatic progress between Washington and Tehran has eased concerns about a prolonged supply shock.

Kevin Warsh offers no policy clues: Why markets still got their answer

Financial markets came to Sintra looking for clues about the Federal Reserve's (Fed) next move. They largely left with confirmation that Fed Chair Kevin Warsh intends to make those clues much harder to find.