Market Snapshot – Pound and Euro Move Higher

Euro Moves Higher

The euro has been making big moves higher along with gold and the pound as the market has gone about selling off the dollar. It all began with the FOMC minutes which came in dovish than what the market was expecting. The minutes almost confirmed the rate hike from the Fed in December but the timeline for the following rate hikes in 2018 remains unclear at this point of time, in the view of some of the Fed members. This was a bit unexpected for the markets as they were expecting some hawkishness from the Fed for the future rate hikes as well. But with the term of Yellen coming to an end, these are a bit uncertain times as far as the dollar is concerned and that is showing up now.

Pound Gets a Boost

The pound has also been moving higher not only due to the weakness in the dollar but by its own strength as well as the incoming data has been pretty strong during the last few days. The budget announcement from the UK also brought it some cheer for the pound and that is why we are seeing the pound trading clearly above the 1.33 region as of this writing.