There has been some dramatic movement in the currency market over the last couple of weeks as it was rocked by the spread of the coronavirus.
During this time, we've seen GBP/EUR tumble from 1.15 to 1.07 and EUR/GBP surge to 0.92. Meanwhile, GBP/USD has nosedived from 1.30 to 1.16, whilst EUR/USD has slumped from 1.14 to 1.07.
Currency markets have been upended by the coronavirus crisis over the past couple of weeks, with lockdowns bringing widespread disruption to the global economy and day-to-day life. During the ensuing chaos, the US dollar has become the undisputed king of currency markets, with investors flocking to the safe-haven currency in droves at the expense of its peers.
The hardest hit appears to have been the pound, which plummeted to a 35-Year low against the US dollar amid growing criticism over the UK government's handling of the crisis.
Meanwhile the euro has also suffered as economic activity in the Eurozone came to a screeching halt due to the quarantine measures put in place by EU governments.
It's safe to assume the Coronavirus crisis will continue to dominate sentiment in the coming weeks, likely infusing further volatility into the currency market. Given the uncertainty surrounding the situation we expect to see the US dollar remain in strong demand.
Over the next couple of weeks, more economic data from March will also start to trickle in, giving investors more insight into how the crisis is impacting economic growth and potentially providing more guidance to markets.
At Currencies Direct, we're here to talk currency whenever you need us, so get in touch if you want to know more about the latest news or how it could impact your currency transfers. Since 1996, we've helped more than 325,000 customers with their currency transfers, just pop into your local Currencies Direct branch or give us a call to find out more.