The EUR has started to fight back after a huge downturn over the past couple of weeks. The single currency has lost positions against most of the major currencies, particularly GBP & the USD. The reasons move have been well documented, with the catalyst being the Swiss National Bank’s (SNB) decision to discontinue their minimum cap of 1.20 against the EUR.
This immediately threw the markets into panic mode and when you add the European Central Bank’s decision to initiate a series of aggressive Quantitative Easing measures to counter the current deflation in the region and the fallout from the Greek election results, it is not really surprising that the EUR has suffered.
However, there have been signs over the past couple of days that the EUR is starting to find some support, having moved over 2 cents against the Pound away from the 7 year lows seen last week. Whether this trend is likely to continue is now a key issue for debate but I do feel we have seen the Pound peak and I wouldn’t be at all surprised to see the EUR start to creep back towards 1.30 over the coming days & weeks.
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