The US dollar roared higher on Wednesday following some hawkish comments from Federal Reserve Chair Jerome Powell, following the US central bank’s latest interest rate decision.
Signs of deteriorating consumer sentiment suggest that the Eurozone economy remained under pressure in the fourth quarter, with weaker spending likely to drag on growth.
Even though the latest IFO German business sentiment survey proved more positive in nature, pointing towards a level of optimism, this failed to shore up the single currency for long.
As the European Central Bank (ECB) looks set to maintain an easing bias in the coming months the potential for euro gains remained generally limited.
If the latest ECB economic bulletin highlights an increasing sense of caution among policymakers this could see the single currency fall further out of favour.
Even though the ECB is unlikely to lower interest rates any further the persistent looseness of its monetary policy could keep EUR exchange rates on the back foot for some time yet to come.
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)