Staying up to date with the latest currency news can help you determine the best time to move your money and maximise the returns on your currency transfer.
What’s been happening?
The Euro has been met by considerable selling pressure in recent weeks, amid concerns a gas shortage could tip the Eurozone into a recession.
Infusing additional volatility into EUR exchange rates was a shock 50bps rate hike from the European Central Bank.
These recession fears, in addition to another aggressive interest rate hike from the Federal Reserve sent the US Dollar skyrocketing in July. With the EUR/USD briefly striking parity in the process.
Meanwhile, the resignation of Boris Johnson and subsequent Conservative leadership election have stoked political uncertainty in the UK and infused volatility into the Pound.
What do you need to look out for?
The Euro could face an uphill battle through the first half of August as restrictions to Russian gas flows to Europe are likely to increase recession risks within the Eurozone.
The immediate focus for GBP investors will be the Bank of England’s latest interest rate decision. Will a more aggressive 50bps rate hike from the BoE following its August policy meeting help to push the Pound higher?
At the same time, the US Dollar is likely to maintain its bullish run so long as market sentiment remains broadly downbeat.
Protecting your transfers from currency volatility
Amid an uncertain future entrenched anyone planning a transfer in the future may want to take steps to limit their exposure to potential currency volatility.
While many people rely on their bank to handle their international transfers, banks generally operate on higher margins, meaning less competitive exchange rates, and they don’t offer the same support and services as some specialist brokers do.
With a leading currency broker like Foremost Currency Group, you’ll likely secure a better exchange rate, along with expert guidance and different services that allow you to mitigate the effects of market volatility.
One particularly popular service is the Forward Contract, which allows you to fix the current exchange rate for up to two years.
To find out more about how you could save money and protect your currency transfers get a free quote or contact Jack Wiles at, JSW@FCGWORLD.CO.UK, +44-1442 892 073 or +44-7720088962.
The information provided in this article is being provided solely for promotional and informational purposes and should not be construed as investment, tax or legal advice.