Published: 19/07/2022 By ECAPSterling managed to post gains against the greenback as the US has a quiet week of data. The pairing managed to put its head above the 1.20 levels by close of play yesterday, and seemingly continues to try and push higher during this mornings trade. Markets look towards tomorrows UK Inflationary data, expected to show a reading of 9.3% against the previous 9.1% reading, if we were to see anything lower than this forecasts figure or even creep back into the 8% range then the pound could push higher.
EURUSD pushed higher also during yesterdays trading and continues to push today also as investors start to price in a dramatic 50 bps hike this Thursday. It was expected for the ECB to hike rates by 25bps but now forecasts sit at a potential 50bps hike this month and then a further hike next month meaning a whole 100bps hike by Septembers meeting, massively contrary to the original tone set by the ECB. Markets now have the 50bps at a 60% chance for Thursday, EURUSD currently sitting around the mid 1.02's as I type, the pairing are a far cry from the sub parity rates we saw last week, and should we see the rate hike meet with forecasts, 1.03 and higher could be on the cards for the pair.