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

    The pound has remained highly volatile over the past couple of weeks, with ongoing Brexit uncertainty leaving the currency on the defensive against its peers.

    This volatility saw GBP/EUR trade in a range of €1.13 - €1.12, and resulted in EUR/GBP holding at £0.88.

    Meanwhile GBP/USD fell from $1.28 to $1.27 over the last two weeks, while EUR/USD has slipped from $1.14 to $1.13.

    What’s been happening?

    The pound continued to be met by volatility throughout the last half of November, with the EU’s sign off on a withdrawal prompting some temporary gains before the Bank of England’s gloomy Brexit analysis sent GBP exchange rates reeling once again.

    Concerns over a prolonged slowdown in the Eurozone have remained a major concern for EUR investors in recent weeks, with the euro facing pressure as November’s PMI readings indicate the bloc is struggling in Q4.

    Meanwhile the US dollar remained on the offensive over the second half of last month, apart from a slight blip at the end of November in the wake of some dovish remarks from Federal Reserve Chair Jerome Powell.

    What do you need to look out for?

    The pound is likely to remain guided by Brexit developments over the next couple of weeks, with a vote on Theresa May’s Brexit deal on 11 December likely to be a key test for GBP investors. Any rejection of the deal is likely to put the UK on the path towards a no-deal Brexit.

    Meanwhile EUR investors will be focused on the European Central Bank’s final rate decision of 2018, with the euro potentially softening if the bank strikes a more cautious tone given the recent slowdown in the Eurozone.

    Finally the US dollar may remain elevated in the coming weeks if political uncertainty in Europe continues to drive investors to safe-haven currencies.

    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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