John Fahey: Negative interest rates will likely weigh on the euro for some time

The relatively compact currency trading ranges come against a backdrop of all the main economies experiencing a rebound in growth amid an easing of Covid-19 restrictions

At some point, over the coming quarters, we could start to see noteworthy action among some of the currencies.

The action in some of the key currency pairs for much of the summer has been confined to fairly tight ranges, with the euro for the most part trading in a compressed corridor of $1.17 to $1.19 since the middle of the year. 

Meanwhile, the euro has spent most of this time in a narrow 85 pence to 87 pence  band against sterling, with a brief period below the 85 pence when it touched a low of 84.5 pence earlier this month.