Pound fluctuates as UK economic recovery slows

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    Latest currency news 

    GBP exchange rates struggled over the last fortnight as the UK supply chain and energy crises caused significant disruption.

    GBP/EUR fluctuated between €1.17 and €1.16, bouncing off a two-month low, while EUR/GBP wavered between £0.85 and £0.86.

    GBP/USD fell from $1.37 to $1.34, before regaining the $1.35 mark, while EUR/USD dropped from $1.17 to $1.16.

     

    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 struggled as the combined supply chain and energy crises hitting the UK caused shortages in CO2 and fuel. However, expectations of a Bank of England (BoE) rate hike early next year limited the losses.

    The single currency also faced challenges as soaring inflation caused a headache for the European Central Bank (ECB), which is maintaining its loose approach to monetary policy.

    Meanwhile, the US dollar strengthened as the Federal Reserve hinted at a rate hike next year, and global economic fears rattled markets, supporting safe-haven USD.

     

    What do you need to look out for? 

    UK GDP data for August is expected to print at 0.6%, but if it misses forecasts, as it did in July, then Sterling may stumble.

    Germany’s ZEW economic sentiment index for October is expected to fall sharply again, from 26.5 to 17.6, which may dent the Euro.

    The latest US non-farm payrolls figure could cause a stir among USD investors, as a strong recovery in the labour market may increase the likelihood of imminent monetary policy action from the Fed.

     

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