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...
Latest currency news
Over the past couple of weeks, we have seen the pound make some convincing gains, supported by the UK's success in its vaccination programme. During this period, we've seen GBP/EUR climb from €1.10 to €1.12, whilst EUR/GBP slipped back to £0.88. Meanwhile, GBP/USD briefly broke through to an eight-month high of $1.37 before settling at $1.36, while EUR/USD slipped from $1.22 to $1.21.
What's been happening?
The pound has made convincing gains over the past couple of weeks as GBP investors welcome the UK's impressive progress in vaccinating the most vulnerable of its population. Also boosting Sterling were comments from Bank of England (BoE) Governor Andrew Bailey, who downplayed speculation the bank could slash interest rates below zero. The euro, meanwhile, has suffered in response to Europe's slow rollout of vaccines, some political uncertainty in Italy, and the European Central Bank's (ECB) concerns over the strength of EUR exchange rates.
At the same time, the US dollar has fluctuated, gaining support in mid-January due to renewed coronavirus concerns, before retreating as Biden optimism swept through markets.
What do you need to look out for?
Looking ahead, GBP investors will be looking for some payoff for the UK's vaccination programme, with the pound potentially facing some headwinds if the government remains resolute in keeping the lockdown in place past mid-February.
The euro is also likely to remain sensitive to vaccination efforts in Europe, where further delays could put additional pressure on the single currency. Meanwhile, the direction of the US dollar rests upon Joe Biden's ability to push through the massive stimulus package, with any setbacks likely to sour market sentiment and boost the US dollar.
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.