17 October 2023
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…
The first half of October has seen some notable volatility in the currency market in response to heightened geopolitical uncertainty and mixed US data.
During this time, we’ve seen GBP/EUR trade between €1.15 and €1.16, while EUR/GBP has held at £0.86.
Meanwhile, GBP/USD struck both a low of $1.20 and a high of $1.23, while EUR/USD fluctuated between $1.04 and $1.06.
The US dollar got off to a shaky start this month as Federal Reserve interest rate expectations were dented by mixed data and dovish remarks from a number of Fed policymakers. While events in the Middle East also injected volatility into the safe-haven currency.
The euro fluctuated over the past couple of weeks as some lacklustre German data stoked fears of a recession in the Eurozone’s largest economy.
Meanwhile, the pound firmed at the start of October as it was supported by stronger-than-expected PMI releases, before subsequently retreating in response to underwhelming GDP data.
Looking ahead, the situation in Gaza could act as a key catalyst of movement in the currency market over the next couple of weeks as Israel’s expected ground offensive threatens to escalate tensions in the region.
Meanwhile some high-impact UK data releases will be key in determining whether the Bank of England (BoE) might need to raise interest rates again.
At the end of October, the European Central Bank (ECB) will deliver its latest interest rate decision. This could see the euro firm if the bank hints that recent events might force it to consider tightening monetary policy again.
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