Central bank rate decisions inspire volatility in the pound, euro and US dollar

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

The pound, euro and US dollar all trading with notable volatility over the past fortnight, following the latest rate decisions from the Bank of England (BoE), European Central Bank (ECB) and Federal Reserve.

During this time GBP/EUR fell from almost 1.13 to a four-month low of 1.11, while EUR/GBP climbed to 0.89.

At the same time, GBP/USD slumped from 1.23 to 1.20, , and EUR/USD touched a nine-month of 1.10 before slipping to 1.07.

What’s been happening?

A dovish assessment of the BoE’s first interest rate decision of the year sent the pound sharply lower over the past couple of weeks. While the BoE raised rates by 50bps GBP investors appear convinced the bank is nearing the end of its hiking cycle.

It was a similar story for the euro over the past two weeks. The ECB also opted for a 50bps hike, but undermined this after implying it will pursue just one more increase before pausing its tightening cycle.

Meanwhile, USD exchange rates witnessed some of the most volatile movement. After falling to a multi-month low in the wake of a dovish 25bps rate hike from the Fed, the US dollar skyrocketed as a bumper payroll print revived Fed rate hike expectations.

What do you need to look out for?

The UK’s upcoming GDP release will be a key focus for GBP investors over the next couple of weeks. The pound is likely to soar if the UK managed to avoid slipping into a recession at the end of 2022.

Meanwhile, the threat of an escalation of the war in Ukraine may cast a long shadow over the euro through the first half of February.

Across the Atlantic, the spotlight will be on the latest US consumer price index. Could a sharper-than-expected drop in inflation dent Fed rate hike bets?

Transferring currency to or from Spain? Make your money go further

If you’re buying or selling a Spanish property, transferring a pension or wages or moving money to cover living costs, you’ll want to get the best possible return.

Currencies Direct have been helping individuals and businesses save time and money since 1996 with excellent exchange rates and no transfer fees.

Get a quote now to find out how much you could save.

With a team of over 550 currency experts and 20+ branches across Spain, Currencies Direct are never far away when you need them.

They’ll keep you up to date with the latest market movements so you can pick the right time to move your money. They also offer a range of specialist services that can be tailored to your individual requirements.

Fix a rate in advance – if you’re buying or selling a Spanish property and are concerned the exchange rate could weaken you can use a forward contract to fix the rate in advance of making your transfer. While you would miss out if the market strengthened you’d be protected from any negative shifts.

Target an exchange rate – if you have a particular exchange rate in mind you can target it with a limit order. Simply set the rate you want to achieve, and your transfer will be triggered automatically if the market moves to that level. You can also use rate alerts to notify you when exchange rates hit target levels.

24/7 transfers – you can use the Currencies Direct online service and app to check live exchange rates and arrange transfers 24/7, keeping you in control. Your personal Account Manager will also be on hand if you want to discuss your requirements over the phone or face to face.

Buy currency in advance – with a Currencies Direct account you can buy currency when the exchange rate is in your favour and hold it in your digital currency wallet until you need it.

If you have a currency requirement coming up, get a quote now or reach out to the Currencies Direct team and quote Olive Press.  

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