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Pound Sinks Against Euro As Morgan Stanley Warns Of Euro Sterling Parity

Published 11/08/2017, 15:45
Updated 09/07/2023, 11:32

Connor Campbell, Financial Analyst, Spreadex

Despite Donald Trump's latest outburst – the President told North Korea that the US ‘locked and loaded’ like some Schwarzenegger knock-off – the market saw its losses ease ever so slightly this afternoon.

The Dow Jones actually pushed 40 points higher after the bell, mainly thanks to a wobble from the dollar. A weaker than forecast inflation reading, coming in at just 0.1% for July, caused the greenback to shed 0.3% against the euro. That allowed the latter to re-cross $1.18 and gave the Dow a bit of breathing room.

As for the FTSE, though it is still down around 0.8%, that’s an improvement on its 1%-plus losses from earlier in the day. The UK index was helped out by sterling’s latest drop against the euro, with the pound dipping below €1.10 for the first time in exactly 10 months, after Morgan Stanley (NYSE:MS) warned of euro-sterling parity by Q1 2018.

Despite the euro’s muscular performance the DAX managed to claw back some ground this Friday, even if it was only 30 or so points. The CAC wasn’t as lucky, with the French index failing to significantly shrink its losses, instead remaining down by 0.9%.

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