The pound plummeted during Wednesday’s trading session as some worse-than-expected inflation figures weighed heavily on market sentiment.
The euro held its ground at the start of last week’s session going higher against the US dollar as markets favoured the single currency on rising geopolitical tensions.
The single currency’s movement against most of its other peers proved to be a little more limited however as investors feared that the Eurozone could be hit hard by increased US trade protectionism.
Meanwhile the second half of the week was a bit more trying for the single currency, as Eurozone industrial production was shown to have declined for the third consecutive month in February.
However the main driver behind the selloff of the euro was the release of the minutes from the latest ECB policy meeting on Thursday.
The minutes revealed that the bank is becoming increasingly concerned about recent movements in currency markets, particularly regarding the strength of the euro, which policymakers fear will hamper the Eurozone’s economic growth and the ECB’s attempts to bolster inflation.
The single currency may continue to struggle during this week’s session as well, with the Eurozone’s latest economic sentiment index expected to show analysts are becoming increasingly pessimistic in their economic outlook for the bloc.
Joining the corporate trading desk in 2007, Phil now overseas 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 FSA approval and has completed the Certificate in International Treasury Management (CertiTM)