The currency markets are still volatile

The marked strengthening of the dollar, evident over the second half of 2014, continued in the early part of 2015. The US currency gained around 11% against the euro and 6% versus sterling in the opening three months of the year, writes Oliver Mangan.

Expectations that the US Federal Reserve will increase interest rates later this year, when they are set to remain on hold elsewhere, has been the key factor driving the dollar higher.

Indeed, further monetary easing across the globe in recent months highlighted the emerging difference between the stance of monetary policy in the US and elsewhere. Nowhere is this contrast more evident than with the eurozone.