Investors are beginning to fear that the Euro could be in for its worst performance in more than six weeks. The currency fell 0.3 percent last Friday to $1.17325, signaling an expected 1.4 percent decline by the end of the week. The fall comes on the heels of a buying-spree by investors that believe rate increases are still to come courtesy of the Federal Reserve. Experts predict the currency will continue sliding this week.
Tough Stretch For The Euro
The Euro’s largest weekly decline since October comes at a very turbulent time in the UK’s history. Brexit negotiations are ongoing, and optimism may be at an all-time low. Just this week, Prime Minister Theresa May was dealt another tough hand as it was announced that 10,500 financial jobs would leave the UK. The figure simply confirms what May had expected – the UK would lose thousands of well-paying jobs by the time Brexit terms are finalized.
Another factor that is hurting the euro is uncertainty surrounding a deal with European Union officials concerning regulations of Ireland. A deal between the two sides would open up free-trade possibilities, likely increasing the euro’s future value. May is scheduled to meet with EU chief executive Jean-Claude Juncker later this week in hopes of cementing an agreement, and perhaps paving the way for the euro to flourish once again.
Euro Falls Despite Brexit Progress
Even though progress is being made between the United Kingdom and the EU, investors are yet to believe in the euro. While the euro continues to suffer, the U.S. dollar has risen. The dollar recently celebrated one of its finest weeks in recent memory – propelled by investors’ optimism towards a tax reform bill. It is expected that more than 200,000 jobs were created in the United States during the month of November. It’s possible both the dollar and the euro could climb in the ensuing weeks.