The Euro continues to come under pressure as a result of political uncertainty in upcoming elections in France and the Netherlands. Investors are worried about surprise outcomes, especially given the events in the UK and the US which brought us a Brexit and Trump presidency. Investors are also wary of a dovish European Central Bank which is expected to begin tapering its QE program soon, and recent comments from officials of the ECB add to cautious sentiment.
As reported at 9:54 am (GMT) in London, the EUR/USD was trading at $1.0642, down 0.09%; the pair earlier hit a low of $1.0633, while the peak was set at $1.0662. The EUR/GBP was higher at 0.8778 Pence, a gain of 0.68% and only a few pips from the session peak of 0.8785 Pence.
Scottish Referendum at Odds with May
Sterling is also lower, falling to an 8-week trough, as concerns grow over another independence referendum in Scotland. One UK newspaper is reporting that Theresa May, the UK Prime Minister, will reject the demands for the Scottish referendum, pointing out the unacceptability of the timing given the Brexit negotiations that are now occurring. The GBP/USD was lower at $1.2126, down 0.76%; the session low was set at $1.2110 while the peak was at $1.2226.