Sep 27, 2019

The euro sinks to lowest level in 2 years against the dollar

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Data: Investing.com; Chart: Axios Visuals

Pulled down by more loose monetary policy from the European Central Bank and weak European growth data, the euro fell to its lowest level in 2 years against the dollar Thursday.

The intrigue: "The biggest story in the world right now is the whistleblower's complaint on President Trump but the biggest story in the forex market is the persistent decline in the euro," BK Asset Management managing director of FX strategy Kathy Lien wrote in a note to clients.

  • The euro was one of the few currencies not to trade higher against the greenback yesterday, and has moved lower in 4 of the last 5 trading sessions, Lien noted.
  • "Investors are worried that between the U.S. and U.K.'s troubles, Eurozone policy makers will need to step in with more action and the longer the Germans wait to announce fiscal stimulus, the more likely EUR/USD will hit 1.08."

Go deeper: The eurozone economy is getting worse

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Bank of America: Investors have no fear of a no-deal Brexit

Data: Investing.com; Chart: Axios Visuals

As the Brexit saga has twisted and turned this year, traders look to have taken their bets on how it will unfold to a new forum: the Euro/British pound currency pair.

The latest: As Prime Minister Boris Johnson has been foiled in his stated attempts to take the U.K. out of the eurozone by any means necessary, traders have pushed the pound to its strongest level in five months against the euro.

Go deeperArrowOct 22, 2019

The ups and downs of the British pound

Data: Money.net; Chart: Axios Visuals

The British pound jumped to a fresh 5-month high on news that a Brexit deal had been reached between U.K. and European Commission negotiators, but petered out nearly as quickly after the Northern Irish Democratic Unionist Party said it would not vote for the deal.

The big picture: Sterling fell below $1.28 before steadying again, closing closer to its highs on the day than its lows as investors retained some optimism.

Go deeperArrowOct 18, 2019

The bears are in control now

Illustration: Aïda Amer/Axios

For much of the year, equity bulls bought stocks on even the faintest hint of good news about companies or the economy, pushing U.S. indexes to new all-time highs despite a slowing economy and negligible earnings growth.

Why it matters: But with the S&P 500 approaching 20% gains for the year and no real signs of growth to be found, a spirit of pessimism and increased caution looks to be gripping the market.

Go deeperArrowOct 2, 2019