Brexit headwinds bludgeon the pound

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.

The pound has fallen back over the past couple of weeks, as heightened Brexit uncertainty unnerves some GBP investors.   This uncertainty has also created some notable volatility in sterling, which saw GBP/EUR trade between 1.17 and 1.15, before settling at 1.16, whilst lifting EUR/GBP from 0.85 to 0.86.

Meanwhile, GBP/USD has slumped from 1.32 to 1.30, and EUR/USD has stumbled from 1.13 to 1.12.

Trade in the pound has become increasingly erratic in recent weeks, with elevated Brexit uncertainty resulting in some dramatic swings in movement, and weakness in GBP exchange rates. At the same time, the euro faced some pressure in late March, as Eurozone economic data continued to underwhelm, before stabilising in April, as some data began to improve.

This has resulted in the US dollar being the strongest performer of the three currencies, in the past couple of weeks, boosted by some robust US data, and safe-haven demand.

Expect to see Brexit continue to drive volatility in the pound for the foreseeable future, especially if the UK crashes out of the EU without a deal. While the outcome of Brexit will also impact the euro, the immediate focus for EUR investors will likely be on the European Central Bank’s upcoming rate decision.

Finally, the ongoing US-China trade talks will likely be in the spotlight for USD investors, because a deal could undermine the US dollar, as traders are moving out of safe-haven assets.

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.     k

Since 1996, we’ve helped more than 250,000 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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Posted by on Apr 12 2019. Filed under Business & Finance. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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