CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 62% of retail investor accounts lose money when trading CFDs with this provider (Saxo Bank). You should consider whether you understand how CFDs, FX or any of our other products work and whether you can afford to take the high risk of losing your money.
7 April 2020
Staying on top of the latest currency news can help you time your transfers more effectively, so find out what you should be looking out for over the next couple of weeks…
Latest currency news
Coronavirus developments and March’s economic reports have continued dictating market sentiment in recent weeks, resulting in significant currency volatility.
The GBP/EUR exchange rate rose from lows of €1.06 to €1.14 while EUR/GBP dipped to €0.87.
Meanwhile, GBP/USD recovered from 1.14 to 1.24, while EUR/USD fell from highs of 1.11 to around 1.07.
What’s been happening?
After sliding for most of March the pound put on a strong performance last week, edging higher against the euro and US dollar.
Sterling benefited despite weak services and manufacturing PMIs, both of which fell to record-lows as the nationwide lockdown took its toll on the British economy.
The euro, meanwhile, struggled in the face of German recession fears and lack of cohesion within the European Union over ‘coronabonds’, a joint debt project that was rejected by Germany, Netherlands and other northern states.
The US dollar put on a mixed performance following the US Federal Reserve’s massive $2 trillion stimulus package but was largely bolstered by investors’ demand for safe-haven currencies.
Even record-high unemployment claims failed to undermine USD exchange rates. The poor US employment data increased concerns for the global economic outlook, lending further support to safe-havens.
However, a decline in the number of coronavirus cases in Europe lead to a return of risk appetite at the beginning of April.
What do you need to look out for?
The coronavirus will continue to dictate market sentiment in the weeks ahead, with investors paying close attention to the number of infections and deaths.
The euro could start pushing higher if the figures keep declining in Spain and Italy.
Meanwhile, the pound could come under pressure from Thursday’s UK industrial and manufacturing data, which is forecast to show output declined even before the coronavirus lockdown.
Downing Street’s announcements on the nation’s coronavirus situation will also continue to influence the pound this week. Any indications of an extension to the lockdown could prove GBP-negative.
The US dollar will also remain reactive to the development of the US coronavirus crisis.
At Currencies Direct we’re here to talk currency whenever you need us, so get in touch if you want to know more about the latest news or how it could impact your currency transfers.
Since 1996 we’ve helped more than 250,000 customers with their currency transfers, just pop into your local Currencies Direct branch or give us a call to find out more.
Exclusive Offer for Collins Sarri Statham Clients & Newsletter Subscribers