FX DAILY | 12.07.2019 | Marc-André Fongern

CURRENCY INSIGHTS - 12.07.2019 | MAF Global Forex

ECB - EURUSD : Basically, we now assume that the ECB will loosen monetary policy as early as July, since the economy has shown no signs of a sustained recovery so far, while the members of the Governing Council appear to be increasingly concerned about subdued inflation. Mario's in a hurry! Germany's industrial sector remains Europe's Achilles heel...

RIKSBANK : The global slowdown won't leave Sweden's economy unscathed; on the contrary, an interest rate hike should definitely be off the table. We assume that the Riksbank will soon adapt to the ECB's approach.

AUDUSD : The Australian dollar appears to be inspired by the hope of several rate cuts in the US, but is obviously ignoring the fact that the RBA is set to continue its loose monetary policy over the coming months.

GBPUSD : Interest rate cuts by the BoE? We are not that quick on the trigger. Without being able to assess the extent to which the political drama called Brexit might continue, we consider the wait-and-see mentality of the central bank to be justified.

USDTRY : The removal of Murat Cetinkaya from office and the controversial business relations with Russia regarding the supply of military equipment don't exactly strengthen our belief in a stable Turkish lira.

STAY TUNED...