CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% 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 May 2019
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…
The pound appeared to find its feet again at the end of April, drifting higher on the back of some positive UK economic data and improved Brexit sentiment.
This resulted in GBP/EUR jumping from €1.15 to €1.17, and pushed EUR/GBP back down to £0.85.
Meanwhile, GBP/USD has climbed from $1.29 to $1.31, whilst EUR/USD slipped from $1.12 to $1.11.
With Brexit likely delayed until October, there was room for the pound to be influenced by economic data again over the past couple of weeks, helping to prop up GBP exchange rates and allowing Sterling to strike multi-week highs as Brexit sentiment improved in late April.
Meanwhile, the euro has struggled over the last couple of weeks, with a stronger-than-expected Eurozone GDP reading in the first quarter failing to dampen wider concerns about the bloc.
Finally, sliding risk sentiment has meant the US dollar enjoyed strong support through to the end of April, but was forced to give up some ground at the start of May after US wage growth fell short of expectations.
Expect to see the pound become increasingly sensitive to political developments over the next couple of weeks, with the upcoming EU elections likely to be viewed as a proxy for a second referendum.
The EU elections are also likely to take their toll on the euro in the coming weeks as Eurosceptic parties threaten to make gains this year.
At the same time, the US dollar is likely to continue to enjoy broad support in the coming weeks, especially if a risk-off mood in markets continues to linger.
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