The European Single Currency, euro, on Friday, June 8, crashed half a percent to $1.1738 EUR=EBS after rising to a three-week high of $1.1840 overnight as investors took profits into this week’s bounce.
The Euro was up more than 1 percent on the week and was set to post its biggest weekly gain since mid-February.
While expectations have grown that the ECB will signal its intention to wind down the quantitative easing program, ING strategists believe the Italian political situation and the potential of a breakout in trade tensions will stay its hand.
“We do not expect a clear announcement of an end to QE next week but rather hidden hints during the question and answer session,” they wrote in a note.
Elsewhere, the Australian dollar AUD=D3 fell more than 0.7 percent to $0.7564 and is poised for its biggest weekly drop in a month, Reuters reports.
But despite all the events carrying potential risk, overall currency volatility remained at low levels with implied volatility on one month euro/dollar EUR1MO= segment still below February highs.
