A look to the week ahead

Last week was largely dominated by the news that the US federal Reserve increased their interest rate by 0.25% to 0.5- 0.75%. However it was more the guidance that was offered that was interesting to the market, as they announced they would look to increase the Interest rate a further 3 times in 2017 as opposed to the previous 2 that was suggested. As a result the USD rallied across the board gaining ground most notably against GBP and the Euro, gaining around 2 cents against both. A knock on effect to this strong USD was that it helped the pound gain against the Euro (as often a strong USD>GBP will help weaken the EUR>GBP rate) taking it close to the best rates we have seen in 3 months. On Friday poor Eurozone trade balance data did not help the greenback allowing the pound to slowly gain through the day. It was saved against the Dollar slightly though, as the US posted poor housing and building permit Ecostats in the afternoon.

This week, as many of you will be making your final preparations for Christmas, the currency market does not slow down. We have a number of key releases from around the world including the Bank of Japan interest rate decision & monetary policy statement today, and minutes from the Royal Bank of Australia tomorrow. Most notably on Thursday we have US GDP and durable goods orders and on Friday UK GDP. So should you have any last minute requirements for currency, whatever it may be, give your Currency Index broker a call today for some friendly guidance on how to get the most out of your transfer.

Wishing you all a Merry Christmas and all the very best for 2017 from myself and all the team at Currency Index.

Mon
03.00 JPY BoJ interest rate decision and monetary policy statement
09.00 EUR German IFO climate assessment
14.45 USD Markit services PMI data

Tue
00.30 AUD RBA meeting minutes
07.00 EUR German producer price index
21.45 NZD Trade balance & import data

Wed
09.30 GBP Public sector net borrowing
15.00 EUR Eurozone consumer confidence
21.45 NZD GDP data

Thu
00.01 GBP Gfk consumer confidence
13.30 USD Jobless claims, income stats, GDP and durable goods orders data

Fri
09.30 GBP UK GDP data
15.00 USD US New homes and housing data