13 September 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
Currency volatility remained elevated over the past couple of weeks, most notably in the EUR/USD exchange rates.
During this period we saw GBP/EUR fall from 1.17 and 1.15, while EUR/GBP fluctuated between 0.84 and 0.87.
Meanwhile, GBP/USD traded between 1.17 to 1.14, while EUR/USD rallied from 0.99 to 1.01.
What’s been happening?
Despite setbacks caused by Russia’s closure of the Nord Stream 1 pipeline, the euro appears to have found its feet again following a record 75bps interest rate hike from the ECB.
The pound fluctuated over the past couple of weeks, as optimism over the government’s energy price freeze has been offset by some dovish rhetoric from the Bank of England (BoE).
Meanwhile, the US dollar was propelled to a 20-year in early September as the currency was underpinned by a gloomy market mood and Federal Reserve rate hike bets.
What do you need to look out for?
The BoE and Fed’s latest interest rate decisions will likely act as key catalysts for their respective currencies over the next couple of weeks.
This could see another 75bps hike from the Fed underpin USD demand, while a 50bps increase from the BoE could weaken the pound amid suggestions the bank is falling behind the curve.
Meanwhile, Europe’s energy outlook will be a key concern for EUR investors. If the EU is able to make concrete steps to avoid a full-blown energy crisis the euro could rally.
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.
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