Euro likely to face more downward pressure

Tight trading ranges for the main currency pairs were a key feature of foreign exchange markets in 2013.

This has largely remained the case so far this year, with some limited pushing out of ranges. The EUR/USD rate has been in a $1.35-$1.40 range since the start of the year.

Likewise, the EUR/GBP pair spent much of the first half of the year in a tight 82p-84p, until it moved down to around the 79p level in recent weeks. Meanwhile, cable (GBP/USD) has mostly traded in a $1.65-$1.71 range.