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 latest interest rate decisions from the UK, Eurozone and US central banks infused some notable volatility into currency markets over the past couple of weeks as they all dropped hints that interest rates may have peaked.
During this time, we’ve seen GBP/EUR climb to a high of €1.16 before falling back to €1.15, while EUR/GBP traded between £0.86 and £0.85.
Meanwhile, GBP/USD fluctuated between $1.29 and $1.26, while EUR/USD fell as low as $1.09 before clawing its way back to $1.10.
What’s been happening?
GBP/USD struck a one-month low in the immediate aftermath of the Bank of England’s latest interest rate decision. The pound was knocked by hints that the BoE is nearing the end of its hiking cycle. Although some hawkish comments from BoE Governor Andrew Bailey helped to temper these losses.
Meanwhile, some underwhelming Eurozone data releases coupled with signals from the European Central Bank that it hasn’t ‘got anymore ground to cover’ placed some notable pressure on the euro over the past couple of weeks.
Finally, the Federal Reserve’s reluctance to commit to a September rate hike weighed on the US dollar at the end of July, although these losses proved short lived in the face of strong US data and a souring market mood.
What do you need to look out for?
The immediate focus will be on the release of the US consumer price index on 10th August. US inflation is forecast to have risen for the first time in over a year. Could this revive Fed rate bets and propel the US dollar higher?
Elsewhere the UK’s upcoming GDP figures could drag the pound lower if they report UK economic growth stalled as forecast in the second quarter. While another deterioration in German economic sentiment could weaken the euro.
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.