Currency Markets Experience Continued Subdued Performance

Currency Markets Experience Continued Subdued Performance

The currency markets are still under tremendous pressure. The British Pound (GBP) and Euro (EUR) are both weakening against the US Dollar (USD). As of Thursday morning in Asia, GBP/USD has managed to cling onto its losses just under the 1.3400 level during a third consecutive session. At the same time, EUR/USD has fallen sharply to as low as 1.1465.

Specifically, during the Asian trading hours, GBP/USD is under pressure trading around the 1.3410 level. The currency pair is currently under strong downward pressure and is hanging around multi-month lows. This move led many traders to fear that more downside was on the way. Analysts credit this performance to a cocktail of positive market optimism and macroeconomic environment factors. These systematic elements are still at work and shaping exchange rates today.

EUR/USD has continued its move south to below 1.1450. The pair’s decline is emblematic of continued struggles in the Eurozone economy and uncertainty over the situation is weighing heavily on investor confidence. Based on recent trading patterns, it’s clear traders are positioning themselves on both currencies. They are projecting out their future paths based on changing market conditions.

The author has no position in any of the stocks mentioned and received no compensation for writing this article, other than from FXStreet.

As traders and market participants closely watch economic indicators and geopolitical developments, risk aversion prevails. The recent volatility in exchange rates shows just how complicated today’s financial situation can be.

Tags