UK political drama inspires sterling volatility

2019/09/13 10:28:06 Written by Canarian Weekly Business
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 past couple of weeks saw a volatile pound react to a flurry of UK political news, with the GBP/EUR exchange rate trading between 1.09 and 1.11, and EUR/GBP retreating to 0.89. Meanwhile, GBP/USD climbed from 1.22 to 1.23, after striking a three-year low of 1.19, and EUR/USD slipped from 1.11 to 1.10. The pound put on the most dramatic performance over the last couple of weeks, initially slumping as Prime Minister Boris Johnson moved to prorogue parliament in September, then roaring back to life, as a series of blows derailed Johnson’s plans, and decreased the odds of a no-deal Brexit. Meanwhile, the Euro struggled to find support, as an increasingly-gloomy outlook for the Eurozone economy limited the appeal of the single currency. Finally, the US dollar faced a sell-off in September, with investors responding to worrying data, which hinted at the prospect of a US recession. UK political news will act as the main catalyst for pound movement, in the coming weeks, with recent events suggesting a general election may now be inevitable. Meanwhile, the euro should maintain a downside bias, as the European Central Bank looks set to announce a “substantial” stimulus package, this month. For USD investors, the focus will be on the Federal Reserve, which is widely expected to deliver another rate cut this month, potentially exerting pressure on the US dollar. 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 250,000 customers with their currency transfers. Just pop into your local Currencies Direct branch, or give us a call to find out more. T: +34 922 971 781 E: W: