Quiet week before currency world awakes to 2014 proper

3 January, 2014

Graham Harborne

As reported yesterday the holiday season has provided very little in terms of significant data but this has not stopped the pound rallying. On the back of a positive final quarter in 2013 the pound has pushed on against both the euro and dollar over the last few weeks and despite data slightly missing the forecast yesterday it has continued to push on and is nearing 2013 highs. This morning has already seen positive housing data and there is a raft of financial data from both the UK and eurozone this morning which could set the tone for the day.

In fairness it is unlikely that we will see any huge movements until the working world is fully back up and running next week when we have a vast number of releases from both the UK and Europe, including interest rate decisions. We may have to wait a little longer before we can tell if the recent adverse weather here in the UK has had a damaging effect on the economy but let’s not kid ourselves its very unlikely to have been positive. With that in mind (and the pound holding firm) it may well be prudent to take advantage of the rates now and remember you can utilise a forward contract allowing you to secure your currency for a future date. If you would like to discuss this option then do get in contact with your account manager here at Currency Index.