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 characterised by notable weakness in the US dollar, which plunged to new multi-month lows in the second half of November.
During this period, we’ve seen GBP/EUR climb from €1.14 to €1.15, while EUR/GBP slipped from £0.87 to £0.86.
Meanwhile, GBP/USD rocketed up from $1.22 to a high of $1.26, while EUR/USD jumped from $1.06 to $1.09.
What’s been happening?
The US dollar nosedived over the past couple of weeks. A softer-than-expected US inflation print was the initial trigger for this slump, with further losses coming as USD investors began to speculate on the possibility of the Federal Reserve cutting interest rates in 2024.
In contrast, the pound appreciated in response to a series of hawkish remarks from Bank of England (BoE) policymakers, as well as some surprisingly strong UK PMI data.
At the same time, trade in the euro has been erratic through the second half of November, with some mixed economic release and conflicting comments from European Central Bank (ECB) officials infusing volatility into the single currency.
What do you need to look out for?
For EUR investors the immediate focus will be on the Eurozone’s latest consumer price index, as another slowdown in inflation could stoke ECB rate cut speculation and pull the euro lower.
Meanwhile, the US dollar may test new lows if the latest US inflation and payroll releases reinforces Fed rate cut expectations.
Finally, in the absence of any high-impact UK data, any movement in the increasingly risk-sensitive pound may be driven by market sentiment. Will persistent risk-on flows help Sterling to get off to a strong start in December?
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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