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26 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
We have witnessed some dramatic movement in the currency market over the past few weeks, most notably in the pound, which crashed to an all-time low against the US dollar.
During this time we saw GBP/EUR fall from 1.15 to 1.11, while EUR/GBP climbed from 0.87 to 0.90.
Meanwhile, GBP/USD nosedived from 1.16 to as low as 1.04, while EUR/USD tumbled from 1.01 to 0.96.
What’s been happening?
Trade in the pound collapsed in the second half of September, with the currency plunging amid fears UK Chancellor Kwasi Kwarteng’s plans for massive tax cuts and borrowing will fan inflationary pressures and balloon public debt.
While not as extreme as the fall in Sterling, the euro also slumped over the past couple of weeks. Undermined by Ukraine concerns and fears of an impending Eurozone recession.
The US dollar, in contrast, soared to a multi-decade high, bolstered by Federal Reserve interest rate hikes and a prevailing risk-off mood.
What do you need to look out for?
GBP investors forecast the Bank of England (BoE) will deliver an emergency rate hike following the crash in the Pound. Could this help to shore up support for Sterling?
The euro, meanwhile, could face headwinds in the coming weeks if the war in Ukraine shows signs of escalating.
Meanwhile, the US dollar’s bullish run shows no signs of abating anytime soon, as the prospects of more Fed rate hikes and a global recession are sure to keep the currency well supported.
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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