GBP/USD Rises While EUR/USD Loses Steam With Increase In Risk Appetite!

GBP/USD is on the rise. GBP/USD is at a 6 year high. On the other hand USD/JPY and EUR/USD lost steam. EUR/USD is hovering around 1.37 level. For EUR/USD, the medium term outlook is still bearish. USD/CAD hit a 6 month low while AUD/USD hit an 8 month high.

Investors warmed to sterling after a survey showing British manufacturing growing at its fastest in seven months added to the case for a rise in interest rates this year, well ahead of the United States.

ECB is meeting again on this Thursday. EUR/USD has almost recovered all the ground that it had lost since the last ECB press conference in which Mario Draghi, President of ECB had announced negative deposit rates.

The euro held near a six-week high against the dollar on Tuesday, threatening a break past $1.37 that could quickly see it back at levels expected to provoke at least a verbal response from the European Central Bank. Dealers said there was strong support for the euro around its 55-day moving average at $1.3698 and it retreated after touching that level overnight.