EUR/USD strikes one-year high amid persistent US dollar selling pressure
Movement in the currency market was characterised by notable US dollar weakness in the first half of April, with USD exchange rates striking new multi-month lows.
Over this period GBP/EUR traded between 1.12 and 1.14, while EUR/GBP held around 0.88.
At the same time, GBP/USD strengthened from 1.23 to 1.24, and EUR/USD climbed from 1.08 to 1.09.
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…
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What’s been happening?
A scaling back of Federal Reserve interest rate expectations, coupled with a broadly upbeat market mood has seen the US dollar face significant headwinds through the first half of April.
The USD selling bias helped to underpin the euro during this period, thanks to the negative correlation between the pairing. Although the single currency’s gains were capped by tensions in Ukraine.
At the same time, Bank of England (BoE) rate hike bets offered support to the pound, before a disappointing UK GDP print sapped Sterling sentiment in mid-April.
What do you need to look out for?
Central bank interest rate speculation is likely to act as a key catalyst of movement in the currency market over the next couple of weeks as investors brace for the latest BoE, Fed and European Central Bank (ECB) policy meetings in early May.
There is also the potential for Ukraine’s long-rumoured spring offensive to inject some volatility into the currency market. The euro is likely to be particularly sensitive to any successes by Ukrainian forces.
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