Euro tumbled sharply to due to dovish ECB monetary policy and weakness to continue in coming week. The next stop for Euro should be around 1.5000 but this level may be breached if the US job report come out with significant strong data.
It’s a very crucial week for Sterling with inflation report and monetary policy announcement from BoE as market pricing in rate hike which is followed by speech from Gov Carney. If BoE hikes rate as expected, GBP/USD will spike up easily 70pips or more.
Commodity currencies extended losses against peers especially Kiwi which dropped to May’s low before bouncing back slightly. USD/CAD jumped to above 1.2900 after cautious tone by BoC on future rate hike.
We expect continued retracement of EUR/NZD and EUR/CAD with target of 1.6775 or even 1.6640 and 1.4765 respectively. Besides, EUR/AUD may face the similar scenario to the target level of 1.5015 or even 1.4915 in near term.
This week key economic events:
