The most traded currency pair in the world has continued this week on its volatile path with the EURUSD interbank rate falling back to the 1.09 level from 1.12 at the end of last week. We can expect this to continue after the market return after the Easter break for the considerable future. The US dollar is known as a safe haven currency so anytime there is considerable uncertainty investors pump their funds into the currency. This results in the currency getting stronger and the effect of the domestic market doesn’t always take its toll.
In the US at the moment there is huge unemployment and jobless claims with people applying for support, far greater than anything we have seen for decades. The economy is suffering badly from the impacts of COVID-19 as well as the people as the death toll continues to soar. There was some better news released this afternoon from Dr Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases who suggested the overall death toll may be 60,000. Whilst this is still a very big number it is a considerable distance from the initial estimate of 100,000 to 200,000.
The fallout on the economy from the Coronavirus is taking its toll in the US and Europe which might explain why the rate is tit for tat. The European Union leaders have been unable to agree on a deal as to how they will help to fund the economies. They have spent the last week trying to find the solution but nothing all 27 countries can agree with. Over the weekend there could be some progress as there isn’t a bank holiday in all the European countries, however it is more likely that the start of next week we may see some currency movements.
If you do have a transfer coming up it’s important to keep up to date with any market movements so you can make informed decisions about when to trade. One of the best ways is by setting a rate alert, so if the rates moves to a level you’re happy with that could be the moment to do your transfer. Get in touch to find out how we could assist you with this.