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Euro Strengthened

About a week ago Sterling gained an additional boost against the Euro, as one of the members of the Bank of England Board indicated he was changing his mind about potentially raising the interest rate. Today’s minutes and the unanimous vote to keep interest rates as they are saw the market rapidly remove those gains previously priced into the value of the pound.

This is part of a trend we have become used to since the start of the week. Already moving 5 cents away from the absolute highs we saw less than 10 trading days ago, the question is no longer when will the Euro stop weakening? Rather the question is now a complex one. When will the Euro stop strengthening? Also, will there be a period of balance before we see the election beginning to weaken the value of Sterling.

The Euro seems to be making a small recovery following some slight improvements in the Eurozone’s economic outlook. Will this continue though? I would have thought that the Euro will remain on the weaker side for now but slowly retrace some of the more recent losses. Tonight’s US Federal Reserve Interest Decision is key! If the US outline further cuts to their base interest rate we should see the Euro weaken as the USD strengthens and further funds from the Euro move to the USD.

This weakness on EURUSD will be reflected on GBPEUR and will represent a very good opportunity for anyone buying Euros

To what extent can the Euro recover?

The Euro seems to be making a small recovery following some slight improvements in the Eurozone’s economic outlook. Will this continue though? I would have thought that the Euro will remain on the weaker side for now but slowly retrace some of the more recent losses. Tonight’s US Federal Reserve Interest Decision is key! If the US outline further cuts to their base interest rate we should see the Euro weaken as the USD strengthens and further funds from the Euro move to the USD.

weakness on EURUSD will be reflected on GBPEUR and will represent a very good opportunity for anyone buying Euros.