The latest interest rate decisions from the Bank of England (BoE), European Central Bank (ECB) and Federal Reserve have injected significant volatility into the currency market so far in May.
EUR/USD strikes one-year high amid persistent US dollar selling pressure. Movement in the currency market was characterised by notable US dollar weakness in the first half of April
After a chaotic start to the month amid a crisis in the banking sector, the currency market stabilised in the second half of March as contagion fears eased.
A crisis in the banking sector infused considerable volatility into the currency market over the past couple of weeks.
The past couple of weeks have seen movement in the currency market grow increasingly volatile amid frequent repricing of central bank interest rate expectations.
Central bank policy bets boost the euro and dent the US dollar – Central bank dynamics have driven the currency markets over the last fortnight.
After ending 2022 on the back foot, the US dollar starts 2023 with a bang. Soaring more than 1% as currency markets reopened after the new year.
Economic uncertainty has continued over the past fortnight, with recession fears and central bank dynamics causing turbulence in the currency market.
A slowdown in US inflation hammered the US dollar over the past two weeks, while prompting a risk-on rally in markets. However, downbeat economic and geopolitical news caused some turbulence.
The pound continued to trade with considerable volatility over the past fortnight amid fiscal and political uncertainty in the UK.
