The euro could strengthen should ECB president Mario Draghi stick tomorrow to indications that monetary policy could be tightened next year, just as the US central bank’s interest-rate path is thrown into doubt.

The so-called “Trump trade” did little to drive global stocks higher as investors tried to assess what parts of the giant US economy would benefit from the tax cuts proposed by the president.

The pound snapped a four-day drop against the euro, yesterday after some investors judged the selling of the UK’s currency was overdone.

Sterling yesterday rose to its highest point since September as weak inflation data in the US weighed on the dollar, while traders are increasingly betting on higher

The UK elections are getting tighter, which could mean another nervy few days this coming week for sterling traders and Irish firms depending on the currency.

Sterling hit a three-week high against the euro and climbed towards $1.30 as traders awaited this week’s Bank of England inflation report and policy meeting.