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’s recent bullish run came to an abrupt end last week amid concerns aggressive interest rate hikes from the Bank of England (BoE) could result in a self-inflicted recession.
During this time GBP/EUR dipped from 1.17 to 1.16, while EUR/GBP traded between 0.85 and 0.86.
At the same time, GBP/USD climbed from 1.25 to 1.27, while EUR/USD traded between 1.07 and 1.08.
What’s been happening?
The pound struck new multi-month highs against the euro and US dollar in mid-June. Sterling subsequently nosedived as stubbornly high domestic inflation may lead the BoE to hike the UK into a recession.
In contrast, the euro firmed as the European Central Bank (ECB) raised rates and hinted at more hikes to come.
Meanwhile, the US dollar traded in a wide range over the past couple of weeks. USD exchange rates initially stumbled as weak US data weakened Federal Reserve rate hike bets, before a souring mood helped the safe-haven currency recoup some of its losses.
What do you need to look out for?
ECB President Christine Lagarde, Fed Chair Jerome Powell and BoE Governor Andrew Bailey are all due to speak on a panel at the ECB’s Annual Sintra Forum on 28 June. Their comments are likely to be closely watched for any hints as to future monetary policy and could therefore infuse some volatility into EUR, USD and GBP.
Elsewhere, Ukraine may be back in focus after an aborted mutiny by mercenaries in Russia. Signs of Russian instability could boost the euro on hopes it may aid Ukraine’s counteroffensive.
Our friends at Currencies Direct
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