Little data leaves market stagnant but US boot of Russian diplomats causes movements
30 December, 2016
Whilst many of you would have enjoyed a particular busy last few days, the market has been relatively quiet in the way of data and that combined with low liquidity in the markets has resulted in a relatively quiet few days.
Yesterday was no different. In the morning we saw UK Nationwide house pricing data released which saw an improvement in both Month on Month (MoM) and Year on Year (YoY) figures. It showed an increase in MoM from a previous 0.2% to 0.8% and in YoY to a reading of 4.5% from a previous 3.8%.
As a result, in the early mornings trading we saw the Pound make marginal gains against the Euro, however against what seems a currently unstoppable USD it barely moved. The Pounds gains against the Euro were extremely short-lived however, as 2 hours later Eurozone data showed a positive for money supply showing an increase from 4.4% to 4.8%, and as a result the earlier movement was reversed and GBP/EUR returned to its open. Similarly after the Euro made minor gains against the Dollar in the morning following its positive data release, it closed where it had opened.
However it was late night news that caused a shift in rates as it emerged that the US had expelled 35 Russian Diplomats, over allegations they had interfered with the recent US election. This has of course affected relations with Putin promising a reaction, and so in the early hours of the morning the USD weakened against the Pound by around a cent, and in turn as a result it allowed the Euro to strengthen against the Pound by around the same. Against the Euro the USD lost also around a cent.
Today continues the periods quiet run in terms of date releases, as alongside Greek retail sales, the only release of major note comes this afternoon as we see the Chicago’s Purchasing Managers Index released. However given lasts nights news and Putin’s character we may well be in for a bumpy few days as markets digest events and how these will affect the upcoming Trump presidency.
As always, should any of need anything please don’t hesitate to get in touch with your Currency Index account manager for some friendly guidance on how to get the most out of your currency transfer.
Myself and all of the staff at Currency Index would like to thank you all for your business and support throughout 2016, and wish you all the very best for 2017!
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