Currency traders will be analysing George Osborne’s speech at tonight’s Mansion house dinner hosted by Mark Carney. It is widely expected that he will use this opportunity to present his plans for introducing tougher penalties for misconduct in the currency markets. It is too early to tell but as the possibility of jail time is not currently a threat in other currency hot spots, there is a fear that London might lose some of its 40% share of the daily multi-trillion currency business.
Euro continues to fall
The last week has seen EUR/USD finally make its way down to the lows of last Thursday’s European Central Bank statement when Mario Draghi outlined his all-encompassing strategy to tackle the euro strength, the eurozone inflation level and encourage economic growth in the region.
The levels that traders will be paying particular attention to will be last week’s lows of $1.3505 and this year’s lows of $1.3477. A close below the latter of the two levels could see the euro ultimately target last November’s low of $1.3295.