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
A resurgence of coronavirus cases and the reintroduction of restrictions in Europe and the UK has triggered significant currency volatility over the past couple of weeks.
This has seen GBP/EUR climb from 1.09 to 1.10 and dropped EUR/GBP to 0.90.
Meanwhile, GBP/USD has traded between 1.29 and 1.26, whilst EUR/USD has dropped to around 1.17.
What’s been happening?
While the pound struggled through the end of September as the UK government announced new coronavirus restrictions, fading no-deal Brexit fears have helped Sterling firm so far in October.
The euro also fell victim to coronavirus concerns over the past couple of weeks as stricter restrictions and some lacklustre data releases have fed into concerns the Eurozone’s economic recovery is stalling.
At the same time, second wave fears helped to turbocharge the US dollar through the end of September, but the ‘Greenback’ was unable to consolidate these gains as news of additional US fiscal stimulus helped to cheer market sentiment.
What do you need to look out for?
Looking ahead, Brexit will continue to act as the main catalyst in the pound as the UK and EU race to reach a deal before the next EU summit in mid-October.
In addition to the threat of more coronavirus restrictions being deployed throughout Europe, the coming weeks could also see the euro grow vulnerable to speculation the European Central Bank (ECB) is gearing up for more monetary easing.
Meanwhile, US political uncertainty looks set to infuse some volatility into the US dollar through the start of October as the US election looms and investors raise concerns over the health of Donald Trump after contracting the coronavirus.
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 289395739 to find out more or alternatively visit the website on www.currenciesdirect.com/portugal and register to get regular updates on the currency markets.
