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24 May 2022
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
Economic uncertainty has continued over the past two weeks, with surprising data releases and recession fears causing volatility in the currency market.
This has seen GBP/EUR move between 1.16 and 1.19, finishing just shy of 1.18, while EUR/GBP dropped down to 0.85.
Meanwhile, GBP/USD has clawed its way up from 1.22 to almost 1.26, while EUR/USD rebounded from 1.04 to 1.06.
What’s been happening?
The pound staged a recovery over the past fortnight. Initially Sterling slipped to multi-month lows as the Northern Ireland protocol dispute and the cost-of-living crisis hammered the UK currency. However, much stronger-than-expected jobs and sales data helped the pound surge higher.
The euro also came under pressure as the Russia-Ukraine conflict showed signs of escalating. But upbeat eurozone GDP data and a hawkish tilt from the European Central Bank (ECB) helped lift EUR against many of its peers overall.
Meanwhile the US dollar started strong but began to weaken as the market mood improved. In addition, worries that the US economy could face some turbulence ahead hurt USD. US retail earnings spooked investors, while some economists fear that the Federal Reserve’s tightening cycle could end up being too aggressive.
What do you need to look out for?
The flash PMIs could cause some significant movement. A huge slowdown in the UK’s services sector may weigh heavily on the pound. In addition, the long-awaited ‘partygate’ report could create headwinds for GBP.
The eurozone’s flash inflation rate next week could boost the single currency. After a more hawkish tone from the ECB, an expected rise in inflation could further fuel rate hike bets.
USD investors will be looking ahead to the Federal Open Market Committee (FOMC) meeting minutes on Wednesday evening. Will policymakers have discussed a 75-bps rate rise?
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.
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