Currency news as 2015 draws to a close

With the year drawing to a close there is very little data out in the last few days which will make a vast difference in the currency markets. Following the interest rate decision in the US earlier this month the dollar continues to keep its strength gaining over 3 cents on the pound whereas the Euro is recovering slowly from its significant deterioration in the last few months and has regained some ground on the greenback. The Euro is also strengthening against the pound as earlier this year we have seen near decade highs against the GBP/EUR pairing. Although the euro continues to claw back ground it is worth noting that the pound still remains in a healthy position, for example this time last year the euro was 7 cents better off against the pound and with the euro continuing to rally who is to say that we won’t be heading towards those sort of levels again, after all the UK is not going to be increasing interest rates next year as planned and has had a negative impact since the announcement from the Bank of England Governor Mark Carney back in November.

With only 3 trading days this week there is minimal data being released across the board. Today’s only notable data release comes from across the pond in the US with consumer confidence to be announced. Tomorrow morning at 7am UBS consumption indicator is released in Switzerland, later in the day over in the US pending home sales is released. Thursday could see some volatility in the market as the ECB hold the monetary policy meeting on accounts and finally later in the day to round off the year the US announce jobless claims data.

As always stay in contact with your currency broker here at Currency Index and as this is my last market report of the year I would like to wish you all a happy new year.