EUR and GBP weekly outlook

The Euro opens a little softer against a basket of currencies today following the ECB and President Draghi’s dovish tone last week. The single currency has come under early selling pressure this morning after dire German Industrial Production data for May (-1.3% versus consensus +0.3%). 

Further movements this week are likely to be data driven with the Fed Reserve’s FOMC minutes due Wednesday and Bank of England policy decision on Thursday. Traders/economists will be looking for any indication from central bankers as to whether an earlier than expected rate hike is more likely in the US or UK. For now, both currencies continue to grind higher as economic growth data and job data supports the case of continued expansion in both nations. 

As a result, the USD opens firmer with the Euro now trading below €/$ 1.3600 whilst Sterling also trades firmer against the Euro having opened initially above € 1.2625. Corporate sellers of Sterling are still reported to have hedging interest approaching € 1.2675 & $ 1.7200 respectively for the time being.