The common currency Euro struck a 3-week peak earlier today against the greenback, though now it is struggling for traction. The Euro had taken advantage of the US Dollar’s weakness as doubts bloom over whether or not the US President can keep his campaign promises to boost fiscal spending. The Dollar is also under some pressure as investors consider whether or not the Federal Reserve is able to push through more interest rate increases over the course of the year, given the recent unexpected string of softer than anticipated economic data.
As reported at 10:37 am (BST) in London, the EUR/USD was trading lower at $1.0722, a loss of 0.07%; the pair earlier hit a peak of $1.0735 before slipping back and trading at a new daily low. The EUR/GBP was up 0.04% to trade at 0.8360 Pence, posting a new high for the session.
Pound’s 1-day Rally Waning
In the UK, the Pound had earlier got a lift after Theresa May, the UK Prime Minister, called for a June election. Yesterday, the GBP/USD hit a high of $1.2908, a price not seen since early October. Analysts say that the Pound’s rally is a result of expectations that Ms. May is aiming to come out with a stronger mandate and possibly, with the election outcome, increase her party majority. That could go a long way to calming those within the party who are concerned about the outcome of the Brexit negotiations. Currently, the GBP/USD is trading at $1.2833, down 0.07