Rating agency Standard and Poor's said it did not expect the European Central Bank to switch away from its supportive monetary policy before 2018, despite signs that inflation pressures are beginning to return.
Talk of Britain drastically reworking trade ties with the European Union after Brexit sent the pound tumbling to two-month lows on Monday, as signals that U.S. interest rates could rise three times this year lifted the dollar.
Growing expectations that U.S. interest rates will rise before the end of the year lifted the dollar and bank shares on Thursday but took the shine off gold, one of the year's best- performing assets so far. Investors were already looking to U.S. jobs data on Friday as the dollar hit a four-week high against the yen and pinned Britain's sterling firmly to a three-decade low.
Britain’s pound slumped to a three-decade low on Tuesday as concerns over Brexit were compounded by the renewed strength of the dollar on resurgent U.S. interest rate hike expectations. Sterling was at its weakest since 1985, hit by a growing sense that the UK may be heading for a 'hard' Brexit where it severs links to the EU's single market in favour of total control over immigration.
An eight percent slump in Deutsche Bank's already battered share price sent Europe into a fresh tailspin on Friday and left world equity markets sliding toward their worst week in three months. Germany's biggest lender, Deutsche, hit by a string of fines for wrongdoing and a sharp fall in its revenues, saw its shares drop below 10 euros for the first time in its history in a brutal European open.