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
We have seen investors favour the US dollar at the expense of the pound and euro over the past couple of weeks, amidst souring market sentiment and the growing divergence in central bank policy.
This has seen GBP/EUR climb from 1.16 to 1.17, whilst pushing EUR/GBP lower to 0.85.
Meanwhile, GBP/USD has retreated from 1.38 to 1.36, whilst EUR/USD has dropped to around 1.17.
What’s been happening?
The pound has traded in a wide range through the past couple of weeks, as growing concerns over the UK’s economic resilience has rocked Sterling sentiment.
The euro, meanwhile, has been undermined by a dovish European Central Bank (ECB), which has maintained a more dovish outlook than most other central banks.
At the same time, the US dollar has been in strong demand in recent weeks, with the ‘greenback’s ascent being fuelled by a prevailing risk-off environment and Federal Reserve speculation.
What do you need to look out for?
Looking ahead, the immediate focus for investors will be the Fed’s next policy decision, with investors hoping for more clarity in regards to the bank’s tapering plans.
The pound could face an uphill battle as we head into October as questions over the strength of the UK’s economic recovery are likely to persist.
Meanwhile, the uncertainty surrounding Germany’s upcoming General election, which will see the Eurozone’s largest economy elect its first new Chancellor in 16 years, could very well infuse fresh volatility into the euro.
At Currencies Direct we’re here to talk currency whenever you need us, so please get in touch if you want to know more about the latest news or how it could impact your currency transfers. Since 1996 we have helped more than 325,000 customers with their currency transfers, so why not give us a call on 00351 289 395 739 to find out more or alternatively visit the website on www.currenciesdirect.com/portugal and register to get regular updates on the currency markets.