The pound stabilised on Tuesday in the wake of some hawkish comments from a Bank of England (BoE) policymaker.
The euro’s initial losses were attributed to Germany’s latest trade figures, as the country reported its first trade deficit in 30 years.
However, the EUR selloff didn’t really get into full swing until the middle of the week when Eurozone recession fears rocked markets.
A sharp increase in European gas prices, coupled with fears that Russian could cut gas exports at any time, stoked fears that economic activity in the Eurozone could be severely disrupted in the second half of 2022.
Helping the Euro to limit its losses in the latter half of the week was the publication of the minutes from the European Central Bank’s (ECB) latest policy meeting, as they revealed some policymakers may support a 50bps hike in July.
Turning to this week, the first half of the session will likely see the focus on the release of Germany’s latest ZEW economic sentiment index. This could see the euro extend its losses if investors morale tumbled again this month.
Otherwise the focus for EUR investors may remain on Europe’s energy security, with more losses likely if gas prices surge again.
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)