Punchy Finish For The Pound

1 December, 2015

Simon Eastman

After the weekend which saw Brit Tyson Fury bring home the heavyweight boxing titles, the pound fought its way up against both the euro and US dollar yesterday.

It was a slow-ish start to the week data-wise as the month finished with German retail sales, which came out as expected and UK money supply and consumer credit figures which were lower than expected. After initially losing ground across the board the pound fought its way back following German inflation figures, which came out as expected and US new home sales posted lower than forecast. The pound gained a cent against the euro and over half a cent against the greenback.

Markets are done with November now and the big month of December kicks off today. We have hugely important announcements from both the ECB and US Fed coming up which will mould the trading patterns for investors going forward, one of which comes this week in the shape of the ECB interest rate setting meet on Thursday, with the question being posed, “will they be cutting interest rates and increasing QE?”

Before that we have plenty to start the festive season off with in the form of German unemployment figures and EU Markit manufacturing PMI. The UK has the same PMI plus the Financial Stability Report. After lunch Canadian GDP is released along with US manufacturing PMI.

Overnight we saw the RBA release their interest rate announcement where no surprises came as rates were held at 2 percent and nothing of note was mentioned in their policy statement and the Aussie rates didn’t change.

It’s likely to be a busy week so stay in touch with the Currency Index team for some friendly guidance on your upcoming transfer.