Summary of Friday’s Events

•  Terror attacks spark plunge in the euro


• Dollar strengthens further

The EURUSD on Friday hit a new low at 1.0956 before a small rebound, the pair has shown no intentions of rising further, after the ECB failed to pull the EURUSD above its previous range. The pair subsequently fell below its previous range reaching its second post Brexit low.

During the press conference following the ECB meeting Mario Draghi stated that the ECB would be better placed to analyse the effects of the Brexit in the next few months, he then assured the public that the ECB is ready to use everything at their disposal if it became necessary.

Stock index futures also started sliding, signifying a retreat away from the recent record highs on Wall Street, right after Draghi's statement was delivered, which preceded a flood of US corporate economic and earnings reports that include the house price index, weekly jobless claims and the existing home sales data.

‘The ECB surprised no one yesterday afternoon when it kept all of its key interest rates unchanged. The central bank also kept its monthly bond purchase programme unchanged in terms of size, duration and in terms of the capital key', said David Morrison, Senior Market Strategist.

The Euro fell further late on Friday on the heels of reports of a terror attack in Munich which left many dead.

The new found descent in the euro is progressively fuelled by many events that are promoting risk aversion in the market. Oil prices share the plight of the euro as they have plunged uncontrollably in recent times, the yen is seemingly gaining ground as it strengthens while the GBP slumps on shocking PMI data.

WTI crude currently displays worries of a saturating global demand overwhelmed by supply as it currently edges lower, slowly breaking through major support points to settle under $43.

The decline of the EURUSD which has been apparent for some time was further compounded when reports surfaced about a shooting in Munich, spooking investors and igniting a selling spree on the Euro. The German authorities are currently preparing a major Police operation and have warned people to stay away from the Olympia-Einkaufszentrum shopping centre which was the point of the attack.

Reports from local media state that the body of the alleged assailant was discovered about 0.6 miles from the shopping centre, and the body was being checked by robots for bombs.

The elite border security unit, GSG9 has been brought in and police helicopters are patrolling all over the city.

The terror attacks this year have affected markets all over Europe, travel stocks of budget airline easy Jet was not spared as the recent terror attacks have resulted in flight cancellations offsetting a rise in seat capacity, leading the company to report a 2.6% decline in revenues of their third quarter.

The attack which ended with many casualties seems to be currently over. With the general idea that it was another terror attack, just on the trail of the kniving seen on a German train and the attack in Nice.