The pound collapsed on Friday as markets were rattled by the contents of UK Chancellor Kwasi Kwarteng’s mini-budget.
ECB rate hike bets were further bolstered later in the week as one of Lagarde’s colleagues suggested a 50 basis point hike might be on the table for July.
However, the euro faltered in mid-week trade after Germany’s consumer confidence index revealed household morale remained at a near record low.
The euro then bounced back again as the currency’s strong negative correlation with the US dollar saw EUR exchange rates firm as the latter stumbled.
But the end of the week then saw the euro face fresh pressure amid renewed fears over European energy security, following reports of a renewed push by the EU to pass its ban on Russian oil imports.
The euro is mixed at the start of this week after the Eurozone’s latest economic sentiment index reported investor morale remained little changed from the one-year low struck in April.
But the single currency looks well positioned to rally in the coming days as the Eurozone’s consumer price index is forecast to report inflation in the bloc climbed to a new record high in May, bolstering expectations the ECB could deliver several interest rate hikes this year.
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)