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 past couple of weeks have seen movement in the currency market grow increasingly volatile amid frequent repricing of central bank interest rate expectations.
During this time, we’ve seen GBP/EUR climb to a high of €1.13 before falling back to €1.12, whilst EUR/GBP slipped from £0.89 to £0.88.
Meanwhile, GBP/USD traded between $1.22 and $1.19, while EUR/USD briefly fell to $1.06 before rebounding to $1.07.
What’s been happening?
Some hawkish remarks from Bank of England (BoE) policymakers, and confirmation the UK narrowly avoided a recession help propel the pound higher in the first half of February. However, a softer-than-expected inflation print swiftly reversed these gains as it upended BoE rate hike bets.
On the other hand, the US dollar, after initially struggling amid an upbeat market mood, strengthened on the expectation the Federal Reserve will raise interest rates at least twice more this year.
Meanwhile, the euro faltered over the past couple of weeks. Weak data and concerns over Ukraine acting as headwinds for the single currency.
What do you need to look out for?
Looking ahead, the threat of an escalation of the war in Ukraine may see the euro struggle to attract support in the coming weeks. A widely expected ground offensive from Russia could see EUR exchange rates plummet.
Meanwhile GBP investors will be keeping a close eye on upcoming UK data. While the UK may have avoided a recession at the end of 2022, signs that economic growth remains sluggish at the start of 2023 could drag on Sterling.
On the other side of the Atlantic, growing confidence for rate hikes from the Fed at its next two policy meetings are likely to underpin the US dollar. As is an increasingly gloomy market mood.
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.