The Euro has recovered most of the ground it lost against the US dollar after the UK referendum voted to leave the EU on June 23rd. The price of EURUSD touched a low on June 24th of 1.09090, a level which was last seen in March, since then it has risen 2.53% to testyesterday’s high at 1.11853.
There had been extensive concern about the possibility of other European countries suffering a contagious effect of the positive Brexit vote. Although the Euro suffered the day after the vote, the market sentiment on the strength of the common currency has since changed a lot.
Dovish comments from members of the Federal Reserve have also helped put further interest rate hikes in the US on hold, at least for now. This has made the Euro more attractive again against the green-back. There will be a scheduled ECB monetary policy meeting at 12:45pm tomorrow. The ECB president will then hold a press conference at 1:30 pm and comments made could spark an increase in volatility. Mentions of more quantitative easing should send the Euro lower.
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