May 2, 2023
EURUSD and GBPUSD: Euro continues to recover above 1.06800
The EURUSD and GBPUSD currency pairs have been closely watched by traders and investors alike in recent weeks, as the euro continues to recover above the 1.06800 level against the US dollar.
The euro has been on a rollercoaster ride in recent months, as concerns over the ongoing COVID-19 pandemic and its impact on the global economy have weighed heavily on the currency. However, recent data releases have shown signs of improvement, with the eurozone economy growing by 12.7% in the third quarter of 2020, following a record contraction in the previous quarter.
This positive news has helped to boost the euro, which has been trading above the 1.06800 level against the US dollar since mid-November. The currency has also been supported by the European Central Bank's decision to increase its bond-buying program by â‚¬500 billion, in an effort to support the economy and boost inflation.
Meanwhile, the GBPUSD pair has also been on the rise, as the UK and EU continue to negotiate a post-Brexit trade deal. While talks have been fraught with difficulties, there are signs that a deal could be reached before the end of the year, which would provide a much-needed boost to the UK economy and the pound.
However, there are still risks to both currencies, with the ongoing pandemic and geopolitical tensions continuing to weigh on investor sentiment. In addition, the US dollar remains strong, as investors seek safe-haven assets amid the uncertainty.
Overall, the outlook for the EURUSD and GBPUSD pairs remains positive, with both currencies showing signs of recovery. However, traders and investors will need to remain vigilant and closely monitor economic data releases and geopolitical developments, in order to make informed trading decisions.