How low will the euro and the pound go?


Both the euro and the pound are facing turbulent times amid economic uncertainty.
The euro has now suffered its longest losing streak against the dollar since it came into existence in 1999. Political uncertainty around the Eurozone is leading to a shaky period for the currency.
Investors who aren’t feeling confident about the euro rallying have now sold off the single currency for the tenth trading session in a row.
Analysts strong believe the currency will continue to fall, with inflation expected to rise.
The euro has now hit its lowest value since last December, how having dropped by 0.6 per cent to $1.0569.
President of the European Central Bank Mario Draghi has said that the Eurozone needs continued monetary support in order to recover.
The euro is currently facing challenges caused by what could be a series of political upheavals, including elections in both France and Germany, and the constitutional referendum in Italy.
The dollar meanwhile, is seeing a surge in value. After dipping following Donald Trump’s shock victory, the dollar has strengthened once more, hitting a high of 13-and-a-half years to take it to 101.48.
The pound is looking stronger too, having made three weeks worth of gains against the euro.
Sterling is now sitting around the $1.24 mark against the dollar.Analysts now believe the effect of the post Referendum slump may have run its course, at least for the moment.
Mark Burgess, who is chief investment officer at Columbia Threadneedle Investments, said: “I do think sterling’s fall may have run its course. We do have to deal with the current account deficit, but you would think this might be enough.”
However, it may well be that the pound suffers fresh losses as Britain prepares to invoke Article 50 by next March, in order to begin negotiations to officially leave Europe.
Analysts at City Index have described the disparity between money in Europe and that in the US as a “tale of two currencies.”
With investors continuing to digest the growing gap between the European and US economies, the euro is continuing to drop in value while the dollar is still heading north.
It means the dollar is currently gearing up for its best performance in a fortnight against the yen in nearly 30 years, while the euro is on its worst losing streak since 1999.

Previous articleWhy the daily commute is getting longer
Next articleWhy Trump won’t jail Clinton
Sam Dunis
Sam comes from Edinburgh and grew up with his mother and step-dad. His father left the country when he learnt he was going to be a father. Sam never had the opportunity to see him and still wonders what he looks like. School wasn’t his thing, he would rather spend sometime with his friends, play rugby and chat girls up. Sam used to help his step dad, a plumber, during summertime. After doing it for several years, he realized he could work with his father and hopefully take over the family business when his step-father would retire. Sam spends most of his time off taking care of his mother, training with the local rugby team. Sam doesn’t have any girlfriend at the moment. He is therefore going out every weekends.