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Geopolitical tension weighs on the Euro

Daily Currency Update

The Euro is on track to lose almost 1.4% for the month against the US Dollar, primarily weighed down by political turmoil in the euro zone. The upcoming snap election in France, set to begin this weekend, has created significant uncertainty.

Market participants are concerned about the potential impact of the election outcomes on the broader Eurozone economy.

Key Movers

US PCE data will be a crucial indicator of inflation and is closely watched by the Federal Reserve when making decisions about interest rates. As a result, the market has remained in a holding pattern, with traders waiting for more clarity on the inflation outlook and potential monetary policy adjustments.

The anticipation surrounding the PCE data has kept the dollar buoyant, reflecting its safe-haven status amidst economic uncertainty.

Expected Ranges

  • GBP/USD: 1.2585 - 1.2665 ▼
  • GBP/EUR: 1.1805 - 1.1865 ▲
  • GBP/AUD: 1.8905 - 1.8985 ▼
  • EUR/USD: 1.0625 - 1.0705 ▼

Written by

See Wah Li


See Wah is passionate about supporting positive transformations when it comes to managing foreign exchange. As a Senior Currency Consultant at OFX, his goal is to help businesses make informed decisions, alleviate risks, and enhance their currency strategies for success. With over 6 years of experience in the foreign exchange market, See Wah’s strength lies in developing effective solutions to help navigate the complexities of currency fluctuations and mitigate their impacts on business profitability.