Over the past two weeks, the pound has made some impressive gains following the Labour Party’s election landslide and hawkish comments from Bank of England (BoE) officials. During this time, GBP/EUR struck a fresh 23-month high, very briefly breaking above €1.19, while EUR/GBP dipped below £0.84
The euro has faced some notable pressure over the past couple of weeks amid the fallout from the latest European elections.
During this period, we’ve seen GBP/EUR hold just shy of a two-year high at €1.18, while EUR/GBP held at £0.84.
Central bank interest rate expectations continued to drive movement in the currency market in the first half of May, with the pound and US dollar particularly exposed to volatility.
The past couple of weeks have been characterised by some significant swings in the US dollar as investors repriced their Federal Reserve interest rate expectations.
The past couple of weeks have been market by a sharp pullback in the US dollar, amid renewed Federal Reserve interest rate cut speculation.
The US dollar struck new multi-month highs in the first half of February, after the Federal Reserve pushed back strongly against bets for an imminent interest rate cut.
The euro has tested new multi-month lows over the past couple of weeks, in the wake of the European Central Bank’s (ECB) latest interest rate decision.
Volatility in the currency market remained elevated as 2023 came to a close, with bets on central bank interest rate cuts triggering some notable swings.
We have seen some notable volatility in the currency market over the past couple of weeks, particularly in the US dollar, which rebounded from multi-month lows.
The second half of October brought more volatility as investors tried to gauge whether another Federal Reserve interest rate rise was on the cards.
