We’re not even three full months into 2016, and we’ve already been seeing some serious fluctuations in the financial markets, including the continuing Commodities slowdown, China stumbling economically and the possibility of the UK voting to leave the EU in a June referendum. But how are some of the world’s currencies – and currency pairs – reacting to that news.

GBP/USD

1st January 2016 – 1.48

10th March 2016 – 1.42

Momentum has been favouring the Dollar during the last few months – we’re certainly some way away from the 1.58 touched last June. The recent announcement of a June date for the long sought after EU referendum caused the pound to sharply drop – the possibility of the UK going it alone hardly fills the financial markets with confidence.

 

EUR/USD

1st January 2016 – 1.08

10th March 2016 – 1.09

EuroDollar has been much calmer over the last couple of months than GBP/USD. However, the Euro also weakened in the wake of Prime Minister David Cameron’s EU referendum announcement. Though there are many voices in the UK’s financial sector warning that a so-called ‘Brexit’ would be a very bad move for the UK economy (as well as a few arguing the opposite), it would hardly be a positive state of affairs for the EU to see one of its most economically powerful and financially stable members leave – and the Euro’s downturn reflects this.

 

USD/JPY

1st January 2016 – 120.62

10th March 2016 – 113.38

The Japanese currency has strengthened considerably in the last couple of months, with the Nikkei 225 dropping as a result, as the export heavy economy feels the impact of a stronger Yen.

GBP/EUR

1st January 2016 –

10th March 2016 –

Although, as discussed above, Sterling and the Euro have both suffered against other currencies in recent weeks, as financial markets batten down the hatches and get ready for the UK’s referendum on EU membership in June, when the two currencies go head-to-head against each other, it’s the Euro which has been coming off better, strengthening against the Pound in the recent period, suggesting that the markets may well agree, as the Remain campaign is saying, that the UK is ‘Stronger In’.

 

AUD/USD

1st January 2016 – 0.730

10th March 2016 – 0.748

The Chinese economic slowdown and plunging commodity prices had a knock-on effect on the Australian Dollar last year. This, combined with a US Dollar boosted by the recent strengthening of the American economy, means that AUD is far away from the giddy heights of 2011-2012, when AUD not only reached parity with USD, but surpassed it, meaning that that the exchange rate gave you more than one US Dollar for every Australian Dollar.

Although it took a dip at the start of the year, in the past couple of months the Australian Dollar has strengthened somewhat against the US Dollar, perhaps due to America adjusting to the