Happy New Year from everyone at Currency Index
2 January, 2019
During UK trading, last year ended pretty well for sterling, as we saw the rates for buying currency improve across the board. The pound moved up nearly a cent against the single currency euro and to a 10 week high against the greenback, some good news for businesses and individuals looking to buy USD.
There wasn’t any data out to help the pound move up, with the likely cause just end of year profit taking as traders unwound their positions ahead of the New Year which was backed up by the fact rates plunged back down again as trading closed around the globe with sterling/euro dropping a cent and a half by the close.
Markets reopen today after New Years Day and although a short week, we have some key data releases to contend with. Sterling will most likely remain under selling pressure ahead of the Brexit deal vote in a couple of weeks time so although the UK does have the usual round of eco-stats one should be wary that investors will be much more cautious to back the pound ahead of the vote. Any increase, if you have currency to buy, could be worth taking advantage of before the vote, just in case things don’t go to Theresa Mays plan come mid month.
In the next few days we have the following releases of note:
Wednesday – UK, EU and US Markit manufacturing PMI figures
Thursday – Swiss retail sales, UK construction PMI, US ISM manufacturing PMI
Friday – UK, EU and US Markit services PMI, UK mortgage and money supply figures, EU inflation, US non-farm payrolls and unemployment data, Canadian unemployment data, speeches by Fed members Powell, Bostic, Bullard and Barkin
As you can read from above, the week ends with a mass of data and central bank speakers, all of which will likely have an effect on the markets. To avoid the volatility, it may be prudent to tie up your New Years trade nice and early just in case things dont go the right way.
Happy New Year to all our clients, we look forward to assisting you throughout 2019.
- Sterling had a couple of brief rallies towards the end of last week 22 July, 2019
- Sterling hits lows of 2019 19 July, 2019
- ‘Backstop is dead’ and Sterling is lowest performing currency 17 July, 2019
- No categories