The pound has performed strongly over the past two weeks owing to increasing confidence in the UK economy.
Last week we saw the GBP/EUR exchange rate move and hold above €1.17, touching a high of €1.18 this week before sharply retreating again.
Meanwhile, the GBP/USD exchange rate fluctuated between a low of $1.36 and a brief high of $1.39, while the EUR/USD exchange rate traded between $1.18 and $1.17.
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…
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…
The euro faced some notable selling pressure over the past couple of weeks as concerns over European energy security stoked Eurozone recession fears.
Coupled with a relentless uptick in the US dollar amid a gloomy market mood and Federal Reserve rate hike expectations, this saw the EUR/USD exchange rate strike parity for the first time since 2002.
Meanwhile, the pound has fluctuated over the past couple of weeks as the resignation of Boris Johnson stoked fresh political uncertainty in the UK.
Looking ahead, any move by Russia to further restrict gas flows to Europe could drive another slump in the euro although an interest rate hike from the European Central Bank (ECB) could help to underpin EUR exchange rates somewhat.
Across the pond, the Fed’s upcoming interest rate decision could drive some notable movement in the currency market. Expect the US dollar to spike if the bank opts for a 100bps hike.
Meanwhile, the upside potential of the pound looks to remain limited while the Conservative leadership election continues to stoke uncertainty.
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