Pound and Euro Rise Against Dollar

After taking a beating in recent trading sessions, the British pound has manged to reclaim some ground against the U.S. dollar in the wake of the release of the minutes from the Feds December meeting.

Rising by 0.55% at 19:45 GMT, the pound now sits around the 1.23040 mark against the dollar, managing to scrape back some ground from the significant loses it faced on a 5-week losing streak. However, some analysts still warn of a situation in which the pound could come close to, or even reach and exceed parity with the dollar once Brexit negotiations are initiated in earnest – the triggering of Article 50 being promised by U.K. Prime Minister Teresa May, in March of 2017.

Posting gains of 0.48% at 19:50 GMT, the euro also rose against the dollar subsequent to the release of minutes from the Feds December meeting. Rising to 1.04602 – reversing a catalogue of loses against the dollar in recent month. Although an impending election season for European leaders, in which populist parties are promising competition against the establishment candidates may provide downward pressure on the euro, as political volatility on the continent promises to rise as the election season gets underway.

Populists in France and Germany, two of Europe’s largest economies, is likely to provide temporary upset if the reports of gains made by populist leaders against their establishment rivals translates into true electoral results.

The inauguration of President-elect Donald Trump may, however, provide some downward pressure on the dollar – pushing ratios in an opposing direction to that followed by many currencies in recent months.

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