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

The first half of December has been marred by considerable volatility in the pound as the risk-off a no-deal Brexit continues to rise.

During this time, we’ve seen GBP/EUR fluctuate between 1.11 and 1.08 whilst EUR/GBP has climbed to a high of 0.91.

Meanwhile, GBP/USD has traded between 1.35 and 1.31, at the same time that EUR/USD has jumped from $1.19 to $1.21.

What’s been happening?

The pound has come under considerable pressure throughout December, with investors growing increasingly unnerved by the failure of the UK and EU to agree upon a trade deal with just days to go before the Brexit transition period is due to come to an end.

The US dollar has also faced a prevailing selling bias over the last couple of weeks as coronavirus vaccine optimism and hopes for another US stimulus package has dampened the ‘greenback’s safe-haven appeal.

Amidst the sell-off of its peers, the euro has roared higher for the first half of the month, with the single currency defying some gloomy EUR data releases to strike a new two-year high against the US dollar.

What do you need to look out for?

Looking ahead it’s safe to assume that trade in the pound will remain extremely choppy until the end of 2020, with GBP exchange rates poised to collapse if the UK and EU are unable to reach a trade agreement.

The euro looks to close 2020 on a high, although concerns over fresh restrictions in Germany and France could temper the single currency’s gains.

For USD investors, meanwhile, the focus will be on the Federal Reserve’s final policy meeting of the year and its forward guidance for 2021.


Our friends at Currencies Direct

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

Find out more

Get Started with CSS

Open an Account

Subscribe to our award winning daily newsletter

Voted "Best Market Newsletter" in 2012, 2014, 2015 and 2017 by the City of London Wealth Management Awards

Subscribe to our newsletter (Popup)

By signing up to our free email, you are consenting to receive these promotions. The newsletter is sent up to three times per day during the week and up to once per day over the weekend and is directed at UK residents. The newsletter contains company news, market movements, CSS research and promotions and breaking economic news. Occasionally our newsletter will contain advertisements from trusted partners. However, we will never give, sell or rent your email address to any other companies. If you want to stop receiving our free emails you can unsubscribe at any time by clicking on the link at the bottom of each email. You can read our privacy policy here.

No, thank you I am already subscribed