The Euro fell back towards $1.12 against the US dollar and held above €1.15 against the British pound as European Central Bank President Mario Draghi failed to deliver the headlines that investors had been looking for this week by not giving any indication as to when the ECB would begin the tapering of its huge quantitative easing programme.

Mr Draghi’s continued focus on getting inflation up has so far cooled investors on the single currency, with the 2017 inflation forecast cut on Thursday to 1.5 per cent from the previous 1.7 per cent forecast back in March, and the 2018 forecast cut to 1.3 per cent from 1.6 per cent.

The ECB did as expected and kept its base interest rate at 0 per cent and Mr Draghi ruled out moving the base rate to negative territory. In addition, we saw an uplift in Eurozone growth forecasts meaning this week wasn’t all that ‘dovish’, with 2017 GDP revised up to 1.9 per cent from 1.8 per cent, and 2018 GDP up to 1.8 per cent from 1.7 per cent.

Sterling

The late surge that we saw in the polling data for Labour UK at the moment looks like it has reflected at the voting booths and that Theresa May’s gamble could not have paid off.

The pound has dropped quickly into $1.27’s against the US dollar and €1.13’s against the Euro already.

US dollar

Focus remains on James Comey, the former FBI director, as he gave evidence to the Senate this week about the Russia probe.

With President Donald Trump already under fire over his tax and health care reforms, this and the other events this week may lead to some difficult-to-understand FX swings. Depending on what Mr Comey has to say, and the implications of these comments, this could actually turn out to be a big trading point for the USD.

Reporters have compared the hearing to the Watergate scandal that brought down former US President Richard Nixon.

Although some details of Mr Comey’s evidence have been released, investors eyes will be on whether he will issue any new accusations about Mr Trump trying to obstruct his investigation.