The euro slumped on Thursday following the European Central Bank’s (ECB) latest interest rate decision.
However, comments from European Central Bank (ECB) president Christine Lagarde saw the single currency slump sharply across the board on Thursday.
As the central bank opted to leave interest rates on hold and Lagarde indicated a greater willingness to leave intervention to Eurozone governments the mood towards the euro soured.
The deepening Covid-19 crisis in Italy also continued to cast a shadow over the outlook of the currency union, with the threat of a potential recession continuing to grow.
With economic disruption escalating in France and Germany the risk of the Eurozone sliding into a state of contraction in the first half of 2020 has increased.
Further weakness could be in store for the single currency on the back of January’s Eurozone trade balance report, with forecasts pointing towards a sharp narrowing of the trade surplus.
Fresh evidence of weakening trade conditions would leave investors with little reason to buy into the euro this week, with trade looking set to deteriorate further over the course of the first quarter.
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)