Coronavirus panic and collapse in oil prices prompt market chaos

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 headlines have dominated market sentiment in recent weeks, resulting in some significant volatility in currency markets.

Over this period we’ve seen GBP/EUR slump from 1.19 to 1.15 and EUR/GBP accelerate to 0.87.

Meanwhile, GBP/USD has climbed from 1.29 and 1.30, whilst EUR/USD has surged from 1.08 to 1.13.

What’s been happening?

The pound has been putting on a mixed performance in recent weeks as the UK government’s threat to walk away from trade talks with the EU by June reignited Brexit uncertainty.

The US dollar, meanwhile, has faced significant headwinds as concerns over the coronavirus saw the Federal Reserve implement an emergency rate cut at the start of March and drove speculation the Fed could cut rates close to zero in its next policy meeting.

Meanwhile, this slump in the US dollar has helped to buoy demand for the euro, which has been on an uptrend in spite of growing worries that coronavirus disruption will see parts of the Eurozone slip into a recession.

What do you need to look out for?

The coronavirus will undoubtedly continue to dominate market sentiment in the weeks to come, as will the response by central banks and governments.

In the UK this could prompt the Bank of England (BoE) to cut interest rates at its next policy meeting on the 26 March.

With the European Central Bank (ECB) running out of monetary firepower, the focus for EUR investors will instead be on Eurozone governments and their plans for fiscal stimulus.

Meanwhile, USD investors will keep a close eye on the outbreak of the coronavirus in the US amid concerns the spread of the disease is far greater than current figures suggest.


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.

Sending
No, thank you I am already subscribed