4 October 2021
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
GBP exchange rates struggled over the last fortnight as the UK supply chain and energy crises caused significant disruption.
GBP/EUR fluctuated between €1.17 and €1.16, bouncing off a two-month low, while EUR/GBP wavered between £0.85 and £0.86.
GBP/USD fell from $1.37 to $1.34, before regaining the $1.35 mark, while EUR/USD dropped from $1.17 to $1.16.
What’s been happening?
The pound struggled as the combined supply chain and energy crises hitting the UK caused shortages in CO2 and fuel. However, expectations of a Bank of England (BoE) rate hike early next year limited the losses.
The single currency also faced challenges as soaring inflation caused a headache for the European Central Bank (ECB), which is maintaining its loose approach to monetary policy.
Meanwhile, the US dollar strengthened as the Federal Reserve hinted at a rate hike next year, and global economic fears rattled markets, supporting safe-haven USD.
What do you need to look out for?
UK GDP data for August is expected to print at 0.6%, but if it misses forecasts, as it did in July, then Sterling may stumble.
Germany’s ZEW economic sentiment index for October is expected to fall sharply again, from 26.5 to 17.6, which may dent the Euro.
The latest US non-farm payrolls figure could cause a stir among USD investors, as a strong recovery in the labour market may increase the likelihood of imminent monetary policy action from the Fed.
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 250,000 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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