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31 January 2022
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 past couple of weeks have seen currency markets increasingly influenced by geopolitical tensions, while central bank policy has also continued to act as a key catalyst.
During this time, we’ve seen GBP/EUR climb from €1.19 to €1.20, whilst EUR/GBP slipped to the lower ranges of £0.83.
Meanwhile, GBP/USD slumped from $1.36 to $1.34, while EUR/USD plummeted from $1.14 to $1.11.
What’s been happening?
Political jitters in the UK have seen the pound’s positive momentum fade over the past couple of weeks, as the ‘partygate’ scandal raised questions over Boris Johnson’s premiership.
In contrast, the US dollar rocketed higher against the majority of its peers, bolstered by geopolitical tensions and a more hawkish outlook by the Federal Reserve
This surge in USD exchange rates, alongside concerns over a divergence in policy between the European Central Bank (ECB) and its peers, dragged on the euro in the second half of January.
What do you need to look out for?
Looking ahead, an impending rate hike from the Bank of England (BoE) could help to bolster the pound, particularly if the bank signals it will be followed by additional hikes throughout 2022.
At the same time, the ECB’s own rate decision could push the euro even lower if the bank maintains it dovish bias.
Meanwhile, the US dollar’s recent rally could met some hurdles if the upcoming US payroll release prints below expectations for the third consecutive month.
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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