CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider (Saxo Bank). You should consider whether you understand how CFDs, FX or any of our other products work and whether you can afford to take the high risk of losing your money.

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 been marked by some notable volatility in currency markets, amidst growing concerns that we face a coronavirus resurgence.

During this time, we’ve seen GBP/EUR slump from 1.11 to 1.09 and EUR/GBP climb to 0.91.

Meanwhile, GBP/USD has plunged from 1.25 to 1.22, whilst EUR/USD has traded between $1.11 and $1.13.

What’s been happening?

Fresh coronavirus outbreaks in countries like China and Germany, as well as a startling spike in cases in the US, has rocked currency markets through the second half of June, amid fears of a second wave of infections.

This has been particularly damaging for the pound. The currency has had to content with Brexit concerns and the Bank of England’s announcement of more stimulus while growing increasingly sensitive to market sentiment.

Despite the rise in coronavirus cases setting back plans to reopen the US economy, the US dollar has actually strengthened over the last two weeks as second wave fears have kept the safe-haven currency in strong demand.

Meanwhile, the euro has fluctuated in recent weeks, with Europe’s solid progress towards eradicating the coronavirus being offset by the EU’s failure to reach an agreement on a recovery fund as well as the threat of a transatlantic trade war.

What do you need to look out for?

Looking ahead, it’s likely the pound will remain on the back foot going forward so long as Brexit progress remains limited and the UK’s coronavirus figures remain elevated.

For EUR investors the focus at the start of July will be whether EU leaders are able to agree on the terms of the coronavirus relief fund, with further delays likely to undermine the single currency.

Finally, with coronavirus concerns continuing to weigh on market sentiment it’s likely we will see the US dollar remain well supported over the coming weeks, although any gains could be tempered as political risks begin to grow.

 

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 250,000 customers with their currency transfers, just pop into your local Currencies Direct branch or give us a call to find out more.

Exclusive Offer for Collins Sarri Statham Clients & Newsletter Subscribers

Find out more

Post a comment

Your email address will not be published. Required fields are marked *

Get Started with CSS

Open an Account

Subscribe to our award winning daily newsletter

Voted "Best Market Newsletter" in 2012, 2014, 2015 and 2017 by the City of London Wealth Management Awards

Subscribe to our newsletter (Popup)

By signing up to our free email, you are consenting to receive these promotions. The newsletter is sent up to three time per day during the week and up to once per day over the weekend. The newsletter contains company news, market movements, CSS research and promotions and breaking economic news. Occasionally our newsletter will contain advertisements from trusted partners. However, we will never give, sell or rent your email address to any other companies. If you want to stop receiving our free emails you can unsubscribe at any time by clicking on the link at the bottom of each email. You can read our privacy policy here.

Sending
No, thank you I am already subscribed