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Markets have begun to look more cautious as the week draws to a close. US Treasury yields have held up well despite further signs of peak US inflation having been reached. USD is holding ground, whilst indices are tentatively higher and commodities consolidate.
With the Fed into its blackout period and a lack of tier one US data this week, there is still a legacy from last Friday that hints at a USD correction. Fears of corporate layoffs in the US dent an indices recovery.
The outlook is turning increasingly negative for the EUR. We look at the key drivers and the outlook for EUR/USD as parity approaches and crosses such as EUR/JPY and EUR/GBP.
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