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

A crisis in the banking sector infused considerable volatility into the currency market over the past couple of weeks.

Over this period GBP/EUR climbed from 1.13 to 1.14, while EUR/GBP slid from 0.88 to 0.87.

At the same time, GBP/USD traded between 1.18 and 1.22, and EUR/USD 1.07 fluctuated between 1.05 and 1.07.

What’s been happening?

The recent malaise in the banking sector was initially triggered by the collapse of Silicon Valley Bank (SVB). The bank’s failure weighted on the US dollar in the past couple of weeks as it prompted USD investors to rein in their Federal Reserve interest rate expectations.

The euro then came under considerable pressure as a subsequent plunge in shares in Credit Suisse triggered a wider European bank selloff. This also resulted in the European Central Bank (ECB) adopting a more cautious tone following its latest interest rate hike.

Meanwhile, the weakness of its rivals has helped to prop up the pound over the past fortnight. However Sterling’s gains have been tempered by domestic headwinds, including speculation the end of the Bank of England’s (BoE) rate hike cycle is imminent.

What do you need to look out for?

Amid ongoing uncertainty regarding the banking sector, the currency market may remain highly volatile in the coming weeks.

This may see the resulting market jitters disproportionately benefit the safe-haven US dollar and pile more pressure on the euro.

On top of this we have the latest interest rate decisions from the Fed and BoE. If either central bank opts to leave interest rates on hold, their respective currency could plummet.

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 325,000 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. CSS Investments has a commercial arrangement with Currencies Direct and will receive a fee if you conduct business with them.

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, 2017, 2020, 2021 and 2022 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.