Good afternoon,

The EUR had a tough day yesterday against both the pound and US dollar over the news of a fire at a nuclear power plant in Ukraine. Against the GBP, the rate crept over the 1.2100 mark, a rate not seen since 2016, pre-Brexit. EUR continues its poor run against the USD as it sinks closer to the 1.1000 handle, currently trading at 1.1020, its worst in nearly two years.

Yesterday, Russian troops took control of the Zaporizhzhia nuclear plant, the largest in Europe. The site was shelled, causing a fire that prompted fears of a possible meltdown. The development spread through the market and continued to weaken the euro, though the fire has now been extinguished and the plant is said to be operating as normal.

The market will continue to be driven by events and headlines in Ukraine, though the first Friday of the month sees US Non-Farm payroll reports released at 13:30. Forecasts have been off the mark over the last three months so any large deviation could provide an opportunity to trade.

Have a great weekend.

Thomas Read, Senior Relationship Manager.

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