Pound sees some steady gains

Yesterday we saw more movements in the markets, helping the Pound’s gradual move higher since early October’s flash crash.  This time driven by positive UK data in the form of Retail Price Index figures for November and positive Inflation figures posting 0.3% above expectations. Aided by the biggest rise in clothing prices and fuel. This is the highest rise since October 2014, and the positive result gave the Pound a boost against the Euro, US Dollar and other major currencies, where the Pound  gained over 70 pips against the Euro and US Dollar as its peak but ended the trading day roughly where it began.

This spike in rates could also be a reaction to markets anticipating a US FED Interest Rate Rise. Markets are heading into the Final FED meeting of the year with the view that chances for a rate hike are close to 100% and that the FOMC will be raising rates by 25bps. Due to be announced at 7pm tonight, be prepared to see another volatile day of trading today. Should we see a rate hike, we could also see the majors currency pairings improve giving those with a buying requirement an advance on previous weeks.  However, it is worth making note that these spikes don’t tend to hang around for too long at all, so it could be worth considering talking to one of our friendly brokers about the Limit contracts we offer to help you make the most of the potential upcoming movements.

Today‘s economic data posts an array of Euro Inflation figures, and EUR industrial production this morning at 10:00, followed by Governor Mark Carney at the Bank Of England speech at 12:15. Then the afternoon’s focus shifts to US Retail Sales at 13:30, Industrial Production at 14:15 and all important Fed Interest Rate decision at 7pm.

With the FED Rate decision tonight and still lots of significant economic data out during the rest of the week to move markets, if you have a upcoming requirement then do get in touch with your CI broker today on 01923 725725 to discuss your options and to be kept clued-up on precisely what is happening and how you can best steer the markets if you have an upcoming requirement.