After ending 2022 on the back foot, the US dollar starts 2023 with a bang. Soaring more than 1% as markets reopened after the new year.
During this time GBP/EUR retreated from 1.14 to 1.13, at the same time that EUR/GBP rose from 0.87 to 0.88.
GBP/USD, meanwhile, plunged from 1.21 to 1.19, while EUR/USD climbed from 1.06 to 1.07, before tumbling back to 1.05.
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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?
The US dollar ticked lower in the last two weeks of 2022 amid a broadly upbeat mood. However, the first day of trade in 2023 has brought with it a dramatic rebound in USD exchange rates.
On the other side of the pond the pound has remained on the defensive through the past couple of weeks. An increasingly gloomy outlook for the UK economy took its toll on Sterling sentiment.
Meanwhile, the euro strengthened through the end of December, supported by a notably hawkish outlook from the European Central Bank (ECB) earlier in the month.
What do you need to look out for?
Reports that Russia is gearing up to launch a massive new offensive in Ukraine in early 2023 could act as a headwind for the euro, while simultaneously boosting the US dollar over the next couple of weeks.
At the same time, the pound could face an uphill battle as ongoing industrial action threatens to further disrupt the UK economy.