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The state of FX: Three tips for navigating the currency markets with Wise’s FX Lead

Madi Corr

18.02.26

Read time 2 minutes

2026 has kicked off with some significant shifts in the currency markets. To help your business navigate these movements, we sat down with Nathan Solomon, FX Lead at Wise, to answer three frequently asked questions on FX fundamentals.

What causes fluctuations in FX rates?

FX is one of those asset classes where almost any type of news can influence the rate between two currencies. Essentially, that is what we term ‘macro’ in FX jargon. FX is a relative ‘game’ and at the core FX is a reflection of the interest rate differential between two countries or currencies as well as the demand for one currency over another. Some of the key drivers would be trade flows, change in interest rate expectation, geopolitics, economic data and movements in other asset classes like equities. To complicate things further, speculation on all of those drivers can push the rate one way or another.

Is it possible to plan for changes in FX rates? If so, how?

Absolutely! Often, there are medium term themes at play for FX rates between two currencies. Depending on your view of how these themes will play out, you may choose to bring forward or delay FX transactions. For example, if you are a UK importer of US goods and see GBP strengthening against USD, you may choose to delay your purchases until your GBP can buy you more USD and hence more purchasing power.

It is also possible to be notified when the FX rate for a currency pair reaches your desired level with tools like ‘Rate Alerts'. For example, you could set an alert to be notified when USD reaches 92 against INR and either have your funds automatically converted or manually convert them. This allows you to avoid unnecessary losses.

What can businesses do if one of the currencies they operate in experiences heightened fluctuations?

First, it is important to identify what’s driving the FX rate fluctuation. If it is a local factor, businesses could hold operating capital in an alternative currency. For instance, if you operate in USD but it experiences heightened fluctuation, you could hold some of your operating capital in GBP or EUR and then convert it to USD as and when you need it. This process is seamless if you hold a multi-currency account with Wise Business.

Conversely, if there is volatility in a foreign currency and a business invoices that currency, they may choose to invoice in their local currency instead for added stability. Businesses that need to purchase foreign currency in the future during volatile periods may choose to set Rate Alerts for the conversion for added security and cashflow forecasting.

A look inside Rate Alerts and Auto Conversions

Wise Business makes it easy to get the best exchange rates for your business with Rate Alerts. Within your Wise Business account, you can select to receive daily updates on the conversion route you’re interested in or be notified when the rate meets your desired level.

Once your alerts are set, you can also turn on Auto Conversions. Auto Conversions allow you to pick your preferred exchange rate and a specified amount to convert between two currencies. We’ll watch the rate, and convert your money automatically when your desired rate, or an even better rate, is met in the market.

That way, you’ll never miss the rate you want. Plus, we use the mid-market exchange rate on every transaction — zero exchange rate markups or hidden fees so it's always clear how much you're paying for FX.

Ready to give it a try? Create a Wise Business account

Looking for more insights on where your currencies stand?

Monitor FX rates with our live currency converter:https://payout-surge.live/us/currency-converter/%3C/a%3E%3C/p%3E

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