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Sterling worst performing

• Posted by currencies in Bank of England, Brexit, Currency, Dollar, Economy, EUR, GBP, Sterling, UK, Uncategorised
• May 21, 2018
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The Pound and Euro are in a contest to see who the worst performer is today, and right now the pound is edging out the euro by just a tad bit.

It’s been all about politics that is weighing on the two currencies today, not helped by technical selling against the greenback too.

The euro is being weighed down by the government planning in Italy and the selloff in Italian bonds, equities also haven’t really helped with that regard.

Meanwhile, in the UK there is an added element of uncertainty with a possible snap general election coming into place as Brexit talks continue to hit a snag.

The Tories are so far denying the possibility, but as rumours like this are doing the rounds in the media it’s not going to help sentiment at the very least.

The dollar hit a fresh five-month high as investors heaved a sigh of relief after U.S. Treasury Secretary Steven Mnuchin declared the U.S.-China trade war “on hold” following their agreement to suspend the tariff threats.

Against a basket of currencies, the greenback rose for the first time since late-December 2017.

Since its rally began on April 17, the dollar has surged more than 5 percent, its biggest rising streak since late 2015, just before the U.S. Federal Reserve’s first interest rate rise since the 2008 financial crisis.