FX MARKET REPORT 16.07.2021

FX MARKET REPORT 16.07.2021

FX MARKET REPORT 16.07.2021

Daily Commentary
FX MARKET REPORT 16.07.2021
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FX MARKET REPORT 16.07.2021

Pound weakens near the end  of the week amid risk aversion. GBP/USD could post the lowest weekly  close since April. Decisive ECB policy action to back up the new policy  framework could trigger a fresh EUR sell off next week at a time when  other major central banks (BoE & Fed) are moving closer to raising  rates. A failure to act would provide some relief for the EUR. The risks  though for next week are higher that there is a more lasting impact on  EUR given this meeting follows the updated monetary policy strategy  review and ECB President Lagarde has clearly indicated that changes will  be made, at least to guidance and depending how explicit those changes  are will determine the impact. Any shock or surprise is likely to imply a  EUR downside move. EUR/USD is likely to remain in a consolidation phase  between 1.1770 and 1.1895 in the next 1-3 weeks. The dollar edged  higher on Friday, logging its largest weekly gain in a month, after  upbeat retail sales data boosted expectations that economic growth  accelerated in the second quarter.

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Pound weakens near the end  of the week amid risk aversion. GBP/USD could post the lowest weekly  close since April. Decisive ECB policy action to back up the new policy  framework could trigger a fresh EUR sell off next week at a time when  other major central banks (BoE & Fed) are moving closer to…

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