Wednesday trading saw sterling slip from the highs of the week as markets braced themselves for Article 50 to be triggered. It has been suggested the events from Wednesday represent a symbolic importance for the UK with the future performance of their economy largely dependent upon the two-year negotiating process.
USD
The US Consumer Confidence Index released on Tuesday exceeded forecasts showing the index hit 125.6 for March versus a forecast of 114. In a television interview, Federal Reserve vice chairman Stanley Fisher suggested two more interest rate hikes from the US were highly probable throughout the rest of the year, subsequently the dollar index retraced from the four-month lows seen on Monday.
Euro
The euro weakened throughout Wednesday trading as it was suggested the European Central Bank is reluctant to review their monetary policy of historic low interest rates and bond buying despite positive economic performance seen from the eurozone throughout the first quarter of the year. This market news, coupled with Article 50 being triggered, saw EUR/USD dip to $1.0750.