Stock Market

Story: Euro Climbs Against Pound as Oil Drops Below $90

By James Thorp

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The euro gained ground against the British pound on March 11 as oil prices tumbled below the $90 threshold, giving the single currency a much-needed lift in forex trading.

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Brent crude fell to $89.50 per barrel in London trading, and that's pretty much music to eurozone ears since the region imports massive amounts of energy.

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Market watchers aren't convinced it'll last.

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The ECB is watching everything closely right now. Christine Lagarde keeps talking about inflation and global energy markets, and her team is basically trying to figure out their…

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But the Bank of England faces bigger headaches. UK inflation won't budge from high levels, making life difficult for policymakers who need to balance rate hikes against economic…

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The pound's struggles are obvious when you look at recent data from the Office for National Statistics.

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Forex analysts at Deutsche Bank think the euro's strength probably won't last if oil prices bounce back.

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The German Federal Statistical Office releases industrial production numbers that could move the euro significantly.

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UK Chancellor Jeremy Hunt faces pressure as he prepares next week's spring budget statement. Hunt needs to tackle inflation while supporting growth - not an easy balance.

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Eurozone inflation data drops March 15, and traders are already positioning for potential surprises.

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OPEC meets later this month too. Oil production decisions there directly affect energy prices, which means direct impact on euro-pound trading.

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Currency volatility remains high as traders navigate central bank policies and economic data releases.

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Germany's manufacturing sector, which accounts for roughly 23% of the country's GDP, has shown particular sensitivity to energy cost fluctuations.

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The International Energy Agency's latest monthly report highlighted Europe's ongoing efforts to diversify energy sources following geopolitical tensions.

The Currency Analytics

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