By Luke Dyson
Following on from last week, we saw significant volatility across most major currency pairs. This was heavily driven by Trump’s new US tariffs.
With massive amounts of investor funds held in the US, as it is believed to be the safe haven currency, it was expected when stocks moved lower from the implemented tariffs that the Dollar might move higher.
However, this was not the case and the dollar followed suit with the stock market, causing significant losses for investors. Now with dollar holdings being moved to Euro as the next investment, we saw the EUR-USD rate suddenly surge.
As a result of this, we saw a multiple cent hit on GBP-EUR, with the market shooting down towards the bottom of its current range. Although the market has taken a tumble, it’s still not a bad buying opportunity given when the market has been the last 12 months.
For the week ahead we have a relatively quiet one data wise, with only US CPI (inflation) on Thursday at 1:30pm.
If you have any up and coming currency requirements please get in touch with your currency consultant at A Place in the Sun Currency today to discuss strategies moving forward to make most out of the currency exchange rates. If you haven’t registered with us already, you can do so here, for access to a personal account manager to guide you through the currency exchange and money transfer process.