Pound losing during a quiet lead up to Christmas

21 December, 2016

Tom Arnold

As is often the case, the week up to Christmas is proving to be a bit of an anti-climax on the markets, with little interest being paid to the limited data being released and therefore little volatility on the markets. As a result, we are seeing some minor corrections of recent big moves and consolidation for the market leader – the US Dollar. The Pound’s recent gains are being gradually eroded and the US Dollar has gained ground across the board – most notably against the Euro, which is trading at 13 year lows against the Greenback.

Today is a very quiet day for data releases with UK public sector net borrowing, US EIA crude oil stocks change and New Zealand GDP, the only releases of note to trouble analysts.

Tomorrow is a busier day with a UK Gfk consumer confidence survey, ECB economic bulletin, US consumer spending, US GDP, US house price index and US durable goods orders. So, plenty to digest there, particularly in the US – could the Dollar consolidate its already strong position and push further ahead or could these releases cause the Dollar some problems?

With the Pound on the back foot, its recent strength slowly eroding away and the vagaries of Festive season’s thin trading, it could well be worth looking to secure your currency ahead of Christmas, to remove the risk of further losses. A forward contract from Currency Index can secure your currency for months ahead with only a small deposit required initially, and will leave you safe in the knowledge that while you munch on mince pies your upcoming requirement is secured and not any longer at the mercy of the unpredictable markets. Give your account manager a call today to discuss your options.