In the coming days, markets may probe and call the bluff on Boris Johnson's threat to crash Britain out of the EU, setting up a full-blown currency crisis well before the Brexit deadline he has set to get out with or without a transition deal by Halloween.

The dollar has remained at very high levels for the past four and a half years.

Sterling steadied after initially posting further large losses on UK political fears but shares in Europe and the US were hit as the fallout of the US-China trade war extended to Chinese champion Huawei and the world’s chip makers for mobile phones.

The pound shrugged off further Brexit developments to notch up a rise on Monday.

The US dollar had a weak start to the year, with the euro-dollar rate rising above $1.20 and then reaching $1.25.

The FTSE 100 hit a record intraday high today as fears of a trade war between the US and China dissipated and the pound continued its downward trajectory.

A key development in currency markets in 2017 was the strengthening of the euro and weakening of the dollar, writes Oliver Mangan

UK inflation has unexpectedly jumped to a near six-year high, forcing the Bank of England to explain to the Chancellor why the cost of living has surged.

The euro has been on a steady upward path against the dollar for much of this year as it climbed from $1.04 in early January to around the $1.20 level by August, writes Oliver Mangan.

The pound fell to a daily low against both the US dollar and euro as investors reacted to Prime Minister's Theresa May's Brexit speech in Florence on Friday.

Sterling strengthened against both the euro and the dollar after UK retail sales rose more than forecast in August, boosting investor expectations that the Bank of England will raise borrowing costs in the coming months.

After the euro surged through a critical technical level last week, analysts who study charts to help guide their predictions are looking back to 2010 for perspective on how high it could rise.

Mr Trump’s proposed expansionary fiscal policies should provide a boost to growth over the medium-term, writes Oliver Mangan.

As widely anticipated, last week’s meeting of the US Federal Reserve saw the central bank increase the target range for the federal funds rate by 25 basis points to between 0.5% and 0.75%.

The recent surge in volatility in the currency market has done little to disturb the relative calm that investors in European stock markets are betting on.

Goldman Sachs says the dollar slump is over.

US Federal Reserve chair Janet Yellen said it is appropriate for US central bankers to “proceed cautiously” in raising interest rates because the global economy presents heightened risks.

Sterling held its steepest decline in more than six years as data confirmed that the UK economy gained momentum at the end of last year.

The pound remains under pressure after dropping below 1.40 US dollars for the first time in nearly seven years amid uncertainty over the UK's membership of the European Union.

Despite a considerable amount of volatility on financial markets and diverging trends in US and eurozone monetary policies, the key euro/dollar exchange rate has been very range bound over the past year, largely trading in a $1.06-$1.15 corridor.

US drugmaker Pfizer has forecast 2016 revenue and earnings below analysts’ estimates, largely because of the strong dollar.

The US dollar was nearly flat against the euro yesterday despite the stronger-than-expected US monthly jobs data, as markets continued to digest Thursday’s unexpectedly small stimulus from the ECB.

The euro headed for its biggest monthly decline against the dollar since March, and may fall sharply again in the coming months against sterling too, as economists unanimously forecast that the ECB will unveil additional monetary stimulus this week.

The dollar climbed to a seven-month high against the euro as the rate of US inflation increased in October, fuelling speculation the Federal Reserve will raise interest rates from near zero as soon as next month.

Following a failed attempt at parity earlier this year, the euro may be set to make a more convincing foray at parity to the US dollar.

Goldman Sachs Group sees its longstanding call for the dollar to reach parity with the euro coming true as soon as December, as the Federal Reserve and the ECB move toward divergent monetary-policy actions.

Sterling tumbled versus the euro and reversed an advance against the dollar after the Bank of England yesterday signalled there is scope to keep interest rates at a record low as inflation weakness persists.

The dollar fell after the Federal Reserve last night held off on raising interest rates. The US central bank declined to boost its short-term interest-rate target at a policy-setting meeting, opting to delay an increase amid stubbornly low inflation, an uncertain outlook for global growth and recent financial market turmoil.

Associated British Foods, the company behind budget retailer Primark, has said a stronger pound and dollar would have a bigger-than-expected hit on full-year earnings and could weigh on profits in its new financial year.

The dollar pared gains as US stock markets erased advances after China cut interest rates following Monday’s global equity wipeout.

There have been some significant moves in global foreign exchange markets in the past few days as a pronounced pick-up in risk aversion sees currencies break out of well-defined trading ranges.

Sterling powered to its strongest in seven and a half years against a trade-weighted basket of currencies yesterday as higher-than expected UK inflation data bolstered bets that the Bank of England will raise interest rates in the coming months.

Stocks edged lower today as talks over keeping Greece solvent stalled and got extended into the weekend.

The Dow Jones industrial average has slipped into the red for the year as US stocks extended their slump.

The marked strengthening of the dollar, evident over the second half of 2014, continued in the early part of 2015, writes Oliver Mangan.

The pound is at its lowest levels against the US dollar since just after the last UK general election as traders weigh the likelihood of another period of political uncertainty as well as signs of a slowdown in the recovery.