Challenging times ahead for declining euro

In recent months, the dollar has had a stronger tone, making gains against a basket of currencies.

This trend started to take hold earlier in the summer, with the currency being supported by improving economic data, which in turn saw the Fed start to hint at interest rates hikes from 2015.

The recent performance of the euro has been in stark contrast to the dollar. Weak eurozone data and ECB policy easing (with potential for more) have seen downward pressure on the single currency. It has been a slow decline by the euro.