Foreign Exchange Report 17/02/2020

The EUR/USD rate is trading below 1.0850, down 1.04% last week and hitting its lowest since April 2017, as economic sentiment in the eurozone weakens. Markets are also closely being watched for further coronavirus developments.

The Pound-to-Dollar pair is trading at 1.3016, down 0.22% today, after the Pound retreated from a weaker Dollar on Friday. Despite France’s foreign minister warning of hostile Brexit talks as the UK’s chief negotiator establishes a harsh stance, the shared currency could be facing fresh new highs in the near future.

The GBP/EUR rate is trading up 2.34% to 1.2046, accelerating steadily as the Sterling returned to positive territory against the Euro. The Pound was the best performing of all major currencies last week, climbing over 2% against the eurozone currency following Conservative Party MP Rishi Sunak being appointed Chancellor. The news raised the outlook for growth, inflation, interest rates and the currency in the coming months.

Elsewhere, the Pound-to-Canadian-Dollar maintained an upbeat performance, trading at 1.7289, up 0.82% last week. The Pound was up almost a full percentage point against the Loonie, following Sunak’s news. Canada’s Dollar also ended the week on a high against other safe-haven currencies such as the Japanese Yen and the Swiss Franc. However, it underperformed against other commodity currencies such as the Australian and New Zealand Dollars.

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