As you know, last week's focus was on central banks in the USA and Europe. The good news is that they didn't disappoint investors: the former, as expected, left rates unchanged, while keeping a few rounds open for further rate hikes. The latter raised its key rates by 25 basis points to 4% for the refinancing rate and 3.50% for the deposit rate. As a result, the spread between the two countries is narrowing, as shown in the chart below.

The corollary is an appreciation of the euro, since the interest-rate differential between two currencies has a direct influence on the pair's trend. As it stands, the EURUSD has broken through its resistance at 1.0785/1.0810, confirming the end of the consolidation initiated in April. The 1.1068 mark is now in sight, ideally before the uptrend continues.

Beyond the euro, it is in fact the European zone which is benefiting from this new upturn: cable is recording new annual highs with 1.3100/88 in its sights, while the CHF remains well oriented below 0.9088/9100. The same is true of the scandies, with the USDSEK back in its former channel at 10.72/80, paving the way for a return to the lows at 10.16.

Only the JPY is still struggling against the USD, even though the pair is now facing a resistance zone at 140.88/142.00, which it will have to overcome to open up more potential in the direction of 146.08 or even the 2022 highs at 151.94.