The Euro may continue to go lower still after hitting its weakest level in two weeks yesterday. This is largely down to inflation data coming through giving rise to speculation of a possible expansion of ECB stimulus.
Market movements have been dependent on recovery data throughout the year but we are now seeing geo-political risk as a primary driver i.e. Syria and on the back of the news flow we have seen a flight away from asset classes such as gold and oil and back into the save haven of the dollar. It is this that’s kept the greenback firm over the last few days. Late August can often bring about some surprises but we should start to see more stability as volumes increase in mid-September.
Euro trading at 1.1725 versus the pound and GBP/USD at 1.5520.
Posted in Daily Market News on May 30 2014