Renewed risks of no-deal Brexit weakens Sterling - 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
After soaring at the start of the year, the pound found itself in reverse gear in the past couple of weeks on the back of renewed Brexit uncertainty.
This has seen GBP/EUR retreat from a 19-month high of €1.16 to €1.14 and allowing EUR/GBP to rebound from £0.86 to £0.87.
Meanwhile, GBP/USD has tumbled from $1.32 to $1.39, while EUR/USD slipped from $1.14 to $1.13.
What’s been happening?
The pound has found itself in a tailspin over the past couple of weeks, with Sterling’s appeal being eroded by heightened Brexit uncertainty as well as some lacklustre PMI figures.
The euro has also had a bit of a rough time in recent weeks, with the single currency being softened by concerns over growth in the Eurozone amid signs parts of the blocs are stagnating.
Meanwhile a dovish policy meeting from the Federal Reserve undermined the US dollar at the start of February, limiting the gains from some robust payroll figures at the start of 2019.
What do you need to look out for?
The pound looks set to become increasingly volatile over the next couple of weeks as the uncertainty surrounding Brexit looks to become increasingly damaging for Sterling the closer we get to the UK’s exit date on 29 March.
In the meantime, the focus for EUR investors will be the release of Germany’s latest GDP figures as they learn whether or not the country fell into a recession at the end of 2018.
Finally, the US is likely to face another government shutdown in February, potentially limiting the appeal of the US dollar going forward.
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