Pound fluctuates amid political uncertainty

  • Pound fluctuates amid political uncertainty

    The pound has fluctuated over the past couple of weeks, amid political uncertainty and mixed data releases. 

    During this period, we’ve seen GBP/EUR slip from €1.16 to €1.15, whilst EUR/GBP has held at £0.86.

    Meanwhile, GBP/USD has remained close to $1.39, while EUR/USD briefly climbed to $1.21 before settling at $1.20.

    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…

     

    What’s been happening?

    The pound has traded in a wide range over the past couple of weeks. The volatility has been partly driven by political jitters in the UK as the government has faced repeated accusations of ‘sleaze’ in recent weeks, while mixed UK economic releases have added to the volatility.

    The US dollar has also fluctuated in recent weeks, with a prevailing sense of market caution buoying the safe-haven currency, but also facing pressure due to the Federal Reserve’s dovish bias.

    Meanwhile, Europe’s improving coronavirus outlook allowed the euro to make steady gains through the second half of April, until confirmation that the Eurozone slipped into a double-dip recession saw the single currency stumble at the finishing line.

     

    What do you need to look out for? 

    Looking ahead, the pound could recover some ground through the first half of May if the Bank of England upgrades its growth forecasts following its latest policy meeting.

    At the same time, the euro has room to rise over the next couple of weeks, assuming the EU’s vaccine rollout continues to accelerate. 

    Meanwhile, the US dollar could receive a boost from the latest US payroll figures as economists predict the US workforce will have continued to expand at a robust pace in April.

     

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