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According to Reuters, the euro slipped to 88.40p earlier today, although losses were limited by widespread expectations that the Bank of England will continue to lag behind the European Central Bank in fiscal tightening.
"The euro is in a typical consolidation phase within a bull trend and it may struggle near term, but the trend remains in place," JPMorgan Private Bank head of EMEA currency strategy Audrey Childe-Freeman explained.
Sterling also edged higher against the US dollar after Monetary Policy Committee member Andrew Sentance repeated his call for higher interest rates, although this had relatively little impact as he is widely perceived as a fiscal hawk.
In lowering Ireland's rating to Baa3, Moody's expressed concern over the country's sluggish economic outlook and warned the government was likely to see its own financial position weaken further over the coming months.
Posted by Chris Weaver
