If 2020 has taught us anything it’s that volatility is here to stay. Pandemics, Elections and Brexit amongst others has caused havoc throughout the year and although there are positive signs ahead, it would be naive to think the eb’s and flows in currency markets will not continue. Although there has been less than expected volatility this week, could this be the calm before the storm? As markets digest the multitude of data and news coming out from around the globe it’s integral to stay informed and ahead of the curve where possible…which is where we come in.
The US Election result combined with news of Pfizer’s 90% successful vaccination trail, has seen nearly all financial indicators in the green across the globe. Yesterday, we saw the Pound hit fresh two months highs against both the USD and Euro, but there is still one major question that remains unanswered…Brexit. Sterling’s rally against the Euro – in place since September – has paused, amidst a combination of technical resistance to the move, and rising tensions as post-Brexit trade negotiations enter their final and most crucial phase.
Privalgo expects there to be continued volatility which is why we are here to assist you with any questions or trades that you may have. Our team of experts will be on hand to help you understand the changes in currency movements and how they may affect your upcoming international transfer.
Historically speaking, fluctuations in foreign exchange currencies are directly linked to current affairs. Changes in social and economic events have a direct impact on the strength of one currency over another.
2015 Greek debt Crisis:
January 5th GBP:EURO = 1.2779 – March 11th GBP:EURO = 1.4154 = +10.75% Movement.
2015 China emerges as the world’s largest economy:
January 1st GBP:USD = 1.5545 – December 31st GBP:USD = 1.4739 = -5.5% Movement.
Brexit Vote, June 23rd, 2016:
June 14th GBP:USD = 1.4117 – June 23rd GBP:USD = 1.4879 = +5.17% Movement.
June 23rd GBP:USD = 1.4879 – June 27th GBP:USD = 1.3219 = -12.56% Movement.
June 21st GBP:EURO = 1.3030 – July 7th GBP:EURO = 1.1669 = -10.44% Movement
2016 US Election, November 8th, 2016.
November 8th GBP:USD = 1.2381 – November 11th GBP:USD =1.2602 = +1.76% Movement.
November 11th GBP:USD = 1.2602 -November 18th GBP:USD = 1.2346 = -2.03% Movement.
2019 UK Election, December 12th, 2019.
December 2nd GBP:EURO =1.1678 – December 13th GBP:EURO = 1.1984 = +2.62% Movement.
2020 COVID-19 Pandemic, March 11th, 2020.
March 9th GBP:USD = 1.3133 – March 19th GBP:USD = 1.1487 = -12.53% Movement.
Historical movements in currency markets can show an indication as to volatility that may be expected over the coming weeks. Let Privalgo guide you through these turbulent times, with a catalogue of products, a wealth of expertise and a commitment to customer service.
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