The pound held steady against the dollar which trades at a three month high against the euro this morning. A final reading of third quarter gross domestic product data due on Tuesday and minutes to the Bank of England's December policy meeting on Wednesday will be the highlights of a holiday-shortened week.
Pound Sterling – UK Markets
Sterling held on at USD1.612 this morning having dipped to a two-month low of 1.605 against the dollar late last week.
The pound trades against the euro at 1.125 and remains under pressure due to a spate of weak UK economic data and a broadly firmer dollar.
US Dollar – US Markets
The dollar traded near a three-month high against the euro at 1.433 this morning, as signs of a recovery in the world’s largest economy gained momentum.
The greenback may extend its biggest weekly rally since June against other majors as reports are expected to show improving home sales in the US.
Euro – European Markets
The euro traded down against the US dollar at 0.697 this morning and was down 0.1% versus sterling at 88.64 pence.
Demand for the euro weakened as the European Central Bank said lenders may have to write down an additional EUR187 billion as loans to property companies and eastern European nations threaten the financial recovery.
Other Currencies – Highlights
The yen climbed to trade at 90.48 against the dollar as Japanese exporters brought home earnings before the end of the year.
The Canadian dollar strengthened late last week as commodity prices rose. It currently trades at 1.066 against the US dollar.
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