CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider (Saxo Bank). You should consider whether you understand how CFDs, FX or any of our other products work and whether you can afford to take the high risk of losing your money.

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.

 

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.

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