UK's monetary policy is beginning to diverge from the Euro's as they will be increasing rates while rates in euro may be cut. UK's economy is doing well, with employment and housing contributing to a large part of their recovery. Euro inflation and growth on the other hand are becoming a concern to the ECB and it is likely Draghi takes action early next month in the form of a rate cut. This would cause a significant drop in the euro.
Recently... German unemployment figures came in higher which may cause the market to begin worrying about Euro's strongest economy.
Recently... German unemployment figures came in higher which may cause the market to begin worrying about Euro's strongest economy.