US dollar rebounds as investors trim Fed rate cut bets
We have witnessed some notable swings in the currency market over the past couple of weeks amid a shifting of central bank interest rate expectations.
We have witnessed some notable swings in the currency market over the past couple of weeks amid a shifting of central bank interest rate expectations.
Trade in the currency market was erratic over the past couple of weeks, amid shifting central bank interest rate cut speculation.
The past couple of weeks have been marked by considerable weakness in the US dollar resulting from dovish signals from the Federal Reserve.
We have seen some dramatic swings in the pound, euro and US dollar over the past couple of weeks as concerns over the US economy rippled through markets.
Over the past two weeks, the pound has made some impressive gains following the Labour Party’s election landslide and hawkish comments from Bank of England (BoE) officials. During this time, GBP/EUR struck a fresh 23-month high, very briefly breaking above €1.19, while EUR/GBP dipped below £0.84
The euro has faced some notable pressure over the past couple of weeks amid the fallout from the latest European elections.
During this period, we’ve seen GBP/EUR hold just shy of a two-year high at €1.18, while EUR/GBP held at £0.84.
Central bank interest rate expectations continued to drive movement in the currency market in the first half of May, with the pound and US dollar particularly exposed to volatility.
The past couple of weeks have been characterised by some significant swings in the US dollar as investors repriced their Federal Reserve interest rate expectations.
Movement in the currency market has remained erratic over the past couple of weeks, with this volatility being exacerbated by thin trading conditions over the Easter weekend.
Central bank interest rate cut speculation has triggered some notable movement in the currency market over the past couple of weeks.