Euro holds its own but faces downward pressure

Narrow trading ranges have been a key characteristic of the main currency markets in the opening quarter of 2014.

The EUR/USD rate has been confined to a $1.35-1.39 range, with the euro trading in the top half of the range over the past month.

Meanwhile, EUR/GBP has been even more range bound, generally trading between £0.82-0.84, while the GBP/USD rate has been stuck between $1.63-$1.68 for the year to date. Even the yen has been much more stable this year, after a sharp fall in 2012/13.