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
Events in Ukraine continued to dictate movement in currency markets over the past couple of weeks, infusing the euro, pound and US dollar with notable volatility along the way.
During this time, we’ve seen GBP/EUR trade between €1.20 and €1.17, whilst EUR/GBP rebounded from a low of £0.82 to £0.85 before quickly slumping again.
Meanwhile, GBP/USD slid from $1.31 to $1.30, while EUR/USD retreated from $1.09 to $1.08.
What’s been happening?
The euro fluctuated over the past couple of weeks. Initially rising amidst signs of process in Ukraine-Russia peace talks, before these hopes were dashed following reports of alleged atrocities carried out by Russia troops in the town of Bucha.
The pound has also traded erratically with fears of a prolonged war in Ukraine stoking fears over the UK’s cost-of-living crisis.
Meanwhile, risk-off flows in addition to hawkish signals from the Federal Reserve, have underpinned demand for the US dollar in recent weeks.
What do you need to look out for?
Looking ahead, the immediate focus will be on the European Central Bank’s (ECB) April policy meeting. EUR investors will be eager to see if the ECB adopts a more hawkish tone in light of the record surge in Eurozone inflation,
For GBP investors the focus is likely to remain on the UK’s rising cost of living, with the pound likely to struggle if inflation continues to accelerate faster than wages.
Across the pond, the US dollar may extend its climb as uncertainty over Ukraine and hawkish Fed speculation both look to reflect positively on the currency.
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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