Currency Update from Currencies Direct - Costa Del Sol

  • Pound rocked by Brexit chaos

    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

    Brexit continued to dominate currency markets in recent weeks, with fears of a no-deal
    scenario leading to some notable volatility in the pound.

    This has resulted in GBP/EUR briefly jumping from €1.13 to €1.15 before closing at €1.12,
    while EUR/GBP climbed from £0.87 to £0.88.

    Meanwhile GBP/USD traded in a range of $1.31 and $1.28, with EUR/USD creeping up from
    $1.13 to $1.14.

    What’s been happening?

    The pound has seen some significant volatility so far in November, with Sterling suffering
    some particularly dramatic losses last week as criticism of a draft Brexit agreement with the
    EU led to the resignation of two senior Cabinet members and attempts to force a no-
    confidence vote in Theresa May.

    Political uncertainty has also has a significant impact on the euro this month, with both Brexit
    and Italy budget concerns denting EUR sentiment.

    Meanwhile outside of a small setback due to the US midterm elections, the US dollar has
    remained buoyant over the past couple of weeks as demand was bolstered by nervous GBP
    and EUR investors.

    What do you need to look out for?

    GBP investors are likely to remain laser focused on UK politics in the coming weeks as
    May’s premiership remains in the balance and the draft Brexit deal is put before Parliament,
    with further losses in the pound likely if events increase the risk of a no-deal Brexit.

    Meanwhile the euro is likely to remain sensitive to any news regarding Italy as markets wait
    for the European Commission’s response to Rome’s decision to defy EU fiscal regulations.

    Finally the US dollar looks set to continue to appreciate as safe-haven demand likely
    remains elevated by European political uncertainty and renewed US-China trade tensions.

    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.

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