The pound traded with modest gains on Tuesday, following the publication of the UK’s latest employment figures.
This came amidst heightened tensions between Ukraine and Russia, with Western leaders warning the latter could launch an invasion at any time.
EUR exchange rates enjoyed some relief in the middle of the week on the back of claims from Moscow that it had begun to withdraw some of its troops from the border.
However this relief proved fleeting as US officials quickly quashed Moscow’s claims, suggesting Russia was in fact continuing to bolster its forces in the area.
EUR investors feared a conflict in Eastern Europe and the imposing of sanctions on Russia could raise energy prices, negatively impact Europe’s banks and hurt economic growth.
Meanwhile, Germany’s ZEW economic sentiment index printed at a seven-month high in February, which offered some modest support to the euro at the start of the session.
So far this week, the euro looks to be off to a more positive start, with the Eurozone’s latest PMI releases reporting a stronger-than-expected rebound in growth, while EUR investors are hopeful Russia-Ukraine tensions could be defused by a summit between US President Joe Biden and his Russia counterpart Vladimir Putin.
This upside in the single currency could be reinforced by the upcoming release of Germany’s IFO business climate index, on the expectation business morale will have improved again in February.
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)