Pound undermined by coronavirus and Brexit fears

  • The pound has traded in a wide range through the first half of June, amidst heightened coronavirus and Brexit concerns.

    During this period, we’ve seen GBP/EUR fluctuate between €1.16 and €1.15, whilst EUR/GBP has held at £0.86.

    Meanwhile, GBP/USD has retreated from $1.42 to $1.40, while EUR/USD has slipped to $1.21.

     

    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…

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    What’s been happening?

    The pound has struggled to find any lasting gains so far in June, with Sterling sentiment being repeatedly undermined by coronavirus and Brexit concerns.

    The US dollar, meanwhile, has been able to trend higher against the majority of its peers over the past couple of weeks, amid a prevailing risk-off mood.

    At the same time, the euro faced a setback this month after the European Central Bank (ECB) struck a dovish tone in the wake of its latest policy meeting

    What do you need to look out for? 

    Looking ahead, a delay to the UK’s 21 June reopening will likely see the pound face an uphill battle through the next couple of weeks.

    For EUR investors, the spotlight through the second half of this month will be on the Eurozone’s latest PMI figures, with the euro poised to accelerate if they indicate the bloc ended the second quarter on a high.

    Meanwhile, the immediate focus for USD investors will be the Federal Reserve’s latest policy meeting, with the US dollar potentially relinquishing some of its recent gains if the Fed reiterates its stance that the recent surge in US inflation in ‘transitory’.

     

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