In recent weeks, most of the meaningful action in the financial markets has been focused on currencies. The euro has very much become the darling of the markets and both the dollar and sterling are under some considerable pressure.
At the end of 2016, the dollar reached a high of 1.0384 against the euro and looked set to test parity, or at least that was the general view in the markets. As is often the case, when the markets get lined up in a certain direction, price action very often takes an about turn and moves in the opposite direction. This is exactly what has happened since the beginning of the year. On Tuesday, the dollar reached 1.1767 against the euro and the dollar looks primed to weaken further.