The euro/U.S. dollar came under renewed selling pressure on Thursday, with prices descending toward 1.0852 after Mario Draghi swiftly quelled taper tantrum speculations with dovish inflation talks. Although the European Central Bank’s overall tone concerning the Eurozone’s economic recovery was slightly more optimistic, the monetary stance remained firmly dovish.
Ongoing geopolitical tensions across the globe and heightened political risk in Europe have limited appetite for riskier assets this week, with global stocks now on the back foot. Asian share concluded in the red on Wednesday, as the uncertainty from world events left investors on edge.
The sterling was volatile on Tuesday, with prices oscillating between losses and gains after markets digested the UK’s steady 2.3% inflation figure for March, which was the highest level since September 2013. The ongoing currency weakness created by Brexit, coupled with rising oil prices has elevated inflation above the Bank of England’s 2% target, with speculation mounting over CPI following its positive trajectory this quarter.