Looking at the NFP data carefully and we can see that the US market is cooling and wage inflation is dropping, we can see that the rate hikes are compounding on the biggest world economy.
Markets are always thinking 6 - 12 months ahead which means that we MOST likely expect for both Euro and GBP to strengthen over the next month.
However, war in Russia, Tensions between China and US will limit large currency moves and any meaningful rises will be met by some sell demand.
This week we will also see the big banks earnings for the US which may in turn either sour the market mood and therefore boost the dollar or propel the EMEA region to prosperity for the Q2. Remember Q2 usually is the bull run of the year followed by Q3 Consolidation/sell off.
REACT DO NOT PREDICT THE MARKETS
Markets are always thinking 6 - 12 months ahead which means that we MOST likely expect for both Euro and GBP to strengthen over the next month.
However, war in Russia, Tensions between China and US will limit large currency moves and any meaningful rises will be met by some sell demand.
This week we will also see the big banks earnings for the US which may in turn either sour the market mood and therefore boost the dollar or propel the EMEA region to prosperity for the Q2. Remember Q2 usually is the bull run of the year followed by Q3 Consolidation/sell off.
REACT DO NOT PREDICT THE MARKETS