Fed’s slowness to raise rates limits dollar’s potential

A notable feature of currency markets since early last year has been the stable trading range for the euro-dollar exchange rate following its sharp fall in 2014.

There have been big moves by some of the other major currencies in the past year, in particular sterling.

However, the euro/dollar has been confined to a $1.06-$1.16 trading band since early 2015 and a $1.08-$1.15 range so far this year.