Latest currency news
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… Here we look at Brexit uncertainty and the prompt Sterling sell-off.
The first half of December has been marred by considerable volatility in the pound as the risk-off a no-deal Brexit continues to rise.
During this time, we’ve seen GBP/EUR fluctuate between 1.11 and 1.08 whilst EUR/GBP has climbed to a high of 0.91.
Meanwhile, GBP/USD has traded between 1.35 and 1.31, at the same time that EUR/USD has jumped from $1.19 to $1.21.
What’s been happening?
The pound has come under considerable pressure throughout December, with investors growing increasingly unnerved by the failure of the UK and EU to agree upon a trade deal with just days to go before the Brexit transition period is due to come to an end.
The US dollar has also faced a prevailing selling bias over the last couple of weeks as coronavirus vaccine optimism and hopes for another US stimulus package has dampened the ‘greenback’s safe-haven appeal.
Amidst the sell-off of its peers, the euro has roared higher for the first half of the month, with the single currency defying some gloomy EUR data releases to strike a new two-year high against the US dollar.
What do you need to look out for?
Looking ahead it’s safe to assume that trade in the pound will remain extremely choppy until the end of 2020, with GBP exchange rates poised to collapse if the UK and EU are unable to reach a trade agreement.
The euro looks to close 2020 on a high, although concerns over fresh restrictions in Germany and France could temper the single currency’s gains.
For USD investors, meanwhile, the focus will be on the Federal Reserve’s final policy meeting of the year and its forward guidance for 2021.
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