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19 July 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
The past couple of weeks have seen the euro face significant pressure amid fears of an impending Eurozone recession.
During this time, we’ve seen GBP/EUR climb from €1.16 to €1.17, whilst EUR/GBP slipped from £0.85 to £0.84.
Meanwhile, GBP/USD fell back from $1.20 to $1.19, while EUR/USD briefly fell to $1.00 before rebounding to $1.01.
What’s been happening?
The euro faced some notable selling pressure over the past couple of weeks as concerns over European energy security stoked Eurozone recession fears.
Coupled with a relentless uptick in the US dollar amid a gloomy market mood and Federal Reserve rate hike expectations, this saw the EUR/USD exchange rate strike parity for the first time since 2002.
Meanwhile, the pound has fluctuated over the past couple of weeks as the resignation of Boris Johnson stoked fresh political uncertainty in the UK.
What do you need to look out for?
Looking ahead, any move by Russia to further restrict gas flows to Europe could drive another slump in the euro although an interest rate hike from the European Central Bank (ECB) could help to underpin EUR exchange rates somewhat.
Across the pond, the Fed’s upcoming interest rate decision could drive some notable movement in the currency market. Expect the US dollar to spike if the bank opts for a 100bps hike.
Meanwhile, the upside potential of the pound looks to remain limited while the Conservative leadership election continues to stoke uncertainty.
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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