CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% 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

The euro has performed well so far in December, with the single currency’s strength stemming from a hawkish European Central Bank (ECB).

During this time GBP/EUR retreated from 1.16 to 1.14, while EUR/GBP clambered from 0.85 to 0.87.

GBP/USD, meanwhile, dipped from 1.22 to 1.21, and EUR/USD spiked from 1.05 to 1.07, before settling at 1.06.

What’s been happening?

The euro struck a new multi-month high in the first half of December. EUR exchange rates soared on the back of the ECB’s latest interest rate decision as the bank signalled it will continue to raise rates at an accelerated pace.

In contrast the pound was undermined by the Bank of England’s (BoE) own interest rate decision. While the BoE raised rates by 50bps as forecast, a dovish split within the Monetary Policy Committee cast doubts over future rate hikes.

Across the Atlantic, another cooling of US inflation weighed heavily on USD exchange rates. However these losses were tempered by risk-off flows, after the Federal Reserve indicated US interest rates will peak higher than previously forecast in 2023.

What do you need to look out for?

Thin trading conditions and a sparse data calendar over the Christmas period could limit volatility in the pound, euro and US dollar over the next couple of weeks.

Any major movement in the currency market may be linked to geopolitical developments. An escalation of the war in Ukraine could weigh on the euro, while concerns over industrial action in the UK could act as a headwind for the pound.

 

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.

Find out more

 

 

Get Started with CSS

Open an Account

Subscribe to our award winning daily newsletter

Voted "Best Market Newsletter" in 2012, 2014, 2015 and 2017 by the City of London Wealth Management Awards

Subscribe to our newsletter (Popup)

By signing up to our free email, you are consenting to receive these promotions. The newsletter is sent up to three times per day during the week and up to once per day over the weekend and is directed at UK residents. The newsletter contains company news, market movements, CSS research and promotions and breaking economic news. Occasionally our newsletter will contain advertisements from trusted partners. However, we will never give, sell or rent your email address to any other companies. If you want to stop receiving our free emails you can unsubscribe at any time by clicking on the link at the bottom of each email. You can read our privacy policy here.

Sending
No, thank you I am already subscribed