The Euro continues to be under some pressure on concerns over the impact that the Deutsche Bank settlement could have on Germany, the largest economy in the Eurozone. The US Department of Justice worked out a deal with Deutsche Bank to accept less than the $14 billion fine originally imposed. Analysts say that the health of the bank, and indeed several others in the Eurozone, could weigh on the Euro in the long term, especially if there will be a need for an eventual bailout.
As reported at 10:40 am (BST) in London, the EUR/USD was trading at $1.1237, down 0.07%; the pair’s daily low was at $1.1219 while the high was at $1.1243. The EUR/GBP was up 0.69% to trade at 0.8724 Pence; the daily range was 0.8657 Pence at the low end to 0.8747 Pence at the high end.
Pound Weighed by Brexit Deadline
The Pound Sterling edged broadly lower after the establishment of a deadline to begin the process that will result in Britain’s departure from the E.U. According to Theresa May, the British Prime Minister, she is determined that the Brexit process would move forward with what she calls, the “right deal.” The GBP/USD was trading at $1.2882, down 0.74%; the pair earlier hit a low of $1.2842 and the high was at $1.295. The pair’s low was just shy of July’s 31-year trough which was set in the wake of the June Brexit vote.