Dollar continues to soar

Market reports
Thanim Islam
  • Markets continuing to favour USD
  • EUR under pressure as spreads widen


Today's report will sound very much like yesterday’s, with USD continuing to gain in the FX space on the back of risk aversion, with equities continuing to fall and yields on US treasuries continuing to climb. The currency was also supported by the hawkish comments from Fed Kashkari and Bowman. GBP and EUR continued to suffer in this environment.


Market rates

* Daily move - against G10 rates at 7:30am, 27.09.23

** Indicative rates - interbank rates at 7:30am, 27.09.23

Data points


  • None today.

Our thoughts

The markets continue to favour USD gains ahead of the bulk of economic data coming out on Thursday and Friday. One thing to note in the FX space is also what's happening between German (Bunds) and Italian (BTP’s) government bonds. The spread between yields on BTP-Bunds at the moment is now at the widest since October last year, and at that point EURUSD was trading approximately 5% lower than current rates. We could see further widening on this spread should the markets be disappointed with Italy’s new budget projections, and thus could well see the EUR weaken particularly versus USD.

Chart of the day

As mentioned above, spreads between 2-year yields on Italian and German government bonds have widened now to the highest since October 2022, threatening to pile on even more pressure on EURUSD.

Source: Bloomberg Finance L.P.

How we can help

Our team of currency experts are here to help you get more from your money when making international payments. We will work with you to understand your payment needs and offer specialised guidance on the best options available to you. Over the last 17 years we’ve helped over a million customers and last year alone processed over £9.1bn. We’re tried and trusted, and we’re ready to help you.

Have a great day.


Expert insights on demand

Sign up to our daily market reports to get the latest news and insights on worldwide currency movements straight to your inbox every morning.

Enter your email address below to subscribe.