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 pound has enjoyed strong support so far in June amid the expectation the Bank of England (BoE) will raise interest rates as high as 5.5% by the end of 2023.
During this time GBP/EUR strengthened from 1.15 to peak at 1.17, while EUR/GBP softened from 0.86 to 0.85.
At the same time, GBP/USD climbed from 1.23 to 1.25, while EUR/USD traded between 1.07 and 1.06.
What’s been happening?
The pound rallied over the past couple of weeks, with the GBP/EUR exchange rate even striking a new nine-month high, as Sterling was underpinned by BoE rate speculation.
In contrast, the euro has stumbled through the first half of June, with underwhelming Eurozone inflation and GDP releases weakening European Central Bank (ECB) rate hike bets.
Finally, we have seen the US dollar fluctuate in recent weeks. The US debt ceiling saga and expectations the Federal Reserve will hit pause on its hiking cycle infusing volatility into USD exchange rates.
What do you need to look out for?
The immediate focus for investors will be on the Fed’s and ECB’s latest interest rate decisions. A decision to leave its monetary policy on hold may weaken the US dollar, while another 25bps rate hike may be supportive of the euro, although the banks’ forward guidance will also be key in determining movement.
This will be followed by the BoE’s rate decision on the 22 June. Expect to see the Pound soar if the BoE signals interest rates will continue to rise in the coming months.
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.
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