The opening weeks of 2016 have been characterised by the severe volatility seen in global markets amid fears over the health of the world economy. This volatility is reflected in currency markets which have seen major shifts since the start of the year.

Sterling

The euro has hardened against the pound sterling by more than 5% since the beginning of the year, hovering around the £0.77 mark this week.

In the US, the dollar looked like it was heading for parity with the euro back in December. However, since the start of the new year, the value of the US dollar has fallen by almost 7% against the euro on the back of mixed US economic data. The dollar is now back to $1.12 against the single European currency this week.