The current easing in trade tensions and rebound in risk appetite may not last if President Donald Trump stirs up trade trouble in order to persuade the Federal Reserve (Fed) to lower interest rates, according to Royal London Asset Management.
The Euro-to-Dollar rate is set to begin trading around 1.1072 at the beginning of the new week after closing the previous one around 0.43% higher on Friday, although studies of the charts are suggesting the short-term trend will be a sideways one.
The Euro has undergone a rollercoaster rise in the wake of the European Central Bank (ECB) interest rate decision on Thursday and now analysts are offering their views on what aspect of the policy announcement caused such volatility.
The Euro whipsawed in volatile swings Thursday after the European Central Bank (ECB) launched a bid to defend the Eurozone from a global economic slowdown that's already put Germany on the doorstep of recession, and following speculation that U.S.China trade deal could be close.
The Euro softened against all of its major rivals Wednesday as investors shunned the currency ahead of an eagerly-awaited interest rate policy decision from the European Central Bank (ECB), which is being billed as likely to set the direction for the single currency into year-end.
The Euro advanced against most of its major rivals Monday as investors continued to chase 'risk assets' higher in the wake of another detente between the U.S. and China while also celebrating the latest developments in the Brexit saga, but Thursday's European Central Bank (ECB) policy decision risks spoiling appetites for the currency.