CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% 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 US dollar has made steady gains over the past couple of weeks as the currency rose in step with a strong pick up in US Treasury yields.

During this period, we’ve seen GBP/EUR climb from €1.15 to €1.16, whilst EUR/GBP has retreated to £0.85.

Meanwhile, after topping $1.42, GBP/USD has stumbled back to $1.38, while EUR/USD slumped from $1.21 to $1.19.

What’s been happening?

The US dollar has outperformed the majority of its peers during the past couple of weeks, as the appeal of the ‘Greenback’ has been turbocharged by surging US Treasury yields, as well as President Biden’s stimulus package passing and some upbeat economic data.

The pound, meanwhile, briefly struck a multi-year high in late February, courtesy of rising UK economic optimism as the government outlined its reopening plans.

After falling victim to some profit taking in end-of-month trade, Sterling has mounted a modest recovery amidst a positive reaction to Chancellor Rishi Sunak’s 2021 Budget.

At the same time, the euro has spent most of the past few weeks on the defensive, being undermined by broad USD strength, as well as some lacklustre data releases, and EU vaccine concerns.

What do you need to look out for?

Looking ahead, the pound looks likely to attempt another rally in March, assuming the initial steps of the UK government’s reopening plans proceed smoothly, and domestic coronavirus cases continue to fall.

The euro is likely to face a more difficult time, with the EU continuing to lag behind in its vaccination rollout and uncertainty over how long countries in the Eurozone will need to maintain restrictions.

Meanwhile, the US dollar is likely to maintain its upward trajectory so long as US yields continue to surge.

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

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 times per day during the week and up to once per day over the weekend and is directed at UK residents. 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