The euro dropped to a three-and-a half year low against British pound on Tuesday, reflecting worries over the eurozone following the Greek and French elections.
Risk aversion has returned to currency markets despite an agreement having been reached by Greece with its private creditors, says Peter Theuninck of Baydonhill FX.
The European Central Bank and Bank of England will remain in focus this week. Peter Theuninck, currency analyst at Baydonhillfx, surveys the outlook for the pound, euro and dollar.
Risk appetite remains at the forefront of currency market trends as this week begins, with progress having been made in Greece to secure further bail-out funds from the EU and thus avoid a debt default.
Currency markets can be volatile, so exchange rates can change quickly. Foreign exchange companies use various techniques to help you avoid being disadvantaged by such movements.
In addition to the focus on the European Central Bank and Bank of England meetings, the markets will continue to monitor bond auctions within the eurozone, with the dollar remaining a safe haven.
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