The euro tumbled on Thursday following the publication of some disappointing Eurozone PMIs.
Klaas stated the bank is likely to raise interest rates by 50bps in September, while also suggesting the ECB could pursue two additional hikes in October and December.
The euro then initially firmed on Wednesday as the ECB held an unscheduled meeting to discuss concerns over fragmentation in the bond market.
However, a lack of concrete plans from the ECB on how to tackle the issue quickly saw the single currency largely reverse these gains.
EUR exchange rates then faltered in the latter half of the week in response to renewed concerns over European energy security.
This came as Russian gas exports to the continent fell dramatically. While Russian gas giant stated the fall in exports was due to maintenance, Germany suggested it was a ‘political’ move by Moscow.
The euro is muted at the start of this week following the outcome of France’s parliamentary elections. EUR investors’ fears that legislation in the Eurozone’s second largest economy could be paralysed after President Emmanuel Macron lost his majority.
In the second half of the week the publication of the latest Eurozone PMIs could lend some support to the single currency if June’s preliminary figures report private sector activity in the bloc remained fairly robust.
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)