After a chaotic start to the month amid a crisis in the banking sector, the currency market stabilised in the second half of March as contagion fears eased.
Over this period GBP/EUR traded between 1.12 and 1.14, while EUR/GBP has traded close to 0.88.
At the same time, GBP/USD strengthened from 1.21 to 1.23, and EUR/USD climbed from 1.07 to 1.08.
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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?
Chaos in Europe’s banking sector initially resulted in erratic movement in the euro through the second half of March, before the single currency rebounded as things stabilised at the end of the month.
The US dollar, meanwhile, stumbled over the last couple of weeks. A dovish Federal Reserve interest rate decision and improving market mood driving the bulk of these losses.
At the same time, the pound has attracted support on the back of a more hawkish-than-expected Bank of England (BoE) rate decision as well as some upbeat UK data releases.
What do you need to look out for?
In the first half of April the focus is likely to be on the latest US inflation and payroll figures. Will some underwhelming releases further undermine Fed rate hike bets and pull the US dollar lower?
For EUR investors a lull in data is likely to see the focus turn back to the war in Ukraine. Any escalation of the conflict could weigh on the euro.
The UK data calendar is equally sparse over the next couple of weeks. Leaving the pound vulnerable to losses if a cautious market mood prevails.
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