Coronavirus uncertainty rocks currency markets in April
After experiencing wild fluctuations in March, the currency market was generally much calmer in April and the major exchange rates have been trading in fairly narrow ranges.
GBP/EUR continues trading in the region of 1.14 while EUR/GBP has been holding 0.87.
GBP/USD is relatively unmoved at 1.23, whilst EUR/USD is fluctuating around $1.08.
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?
While the coronavirus has remained in the spotlight, investors have also spent the last couple of weeks reviewing the latest economic news.
Fears that the global economy could be heading for the worst slowdown since the Great Depression have been fuelled by a run of concerning stats, with US unemployment soaring and output in the UK and Eurozone falling off a cliff.
Rising tensions between the US and China have also been providing cause for concern.
That being said, demand for the safe-haven US dollar has dipped slightly thanks to the news that a number of countries in the process of/are planning to ease lockdown restrictions and reopen their economies.
What do you need to look out for?
In the Eurozone the road to recovery looks long, and the single currency remains vulnerable to losses from gloomy data.
Additionally, there are concerns over the European Central Bank’s ability to operate independently after a German court ruled the ECB must justify its massive quantitative easing programme.
In the UK, meanwhile, the focus for GBP investors will be on the UK government’s lockdown exit strategy and how Johnson plans to start reopening the economy.
Finally, the US dollar is likely to remain highly sensitive to market sentiment over the coming weeks, potentially giving more ground as more countries lift their lockdown measures.
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