The pound dipped near a two month low against a strong dollar this morning which trades close to a three month high versus the euro in the run up to Christmas.
Pound Sterling – UK Markets
Sterling weakened this morning, hovering close to two-month lows against the dollar (0.626), as it struggles to recover following weak UK gross domestic product data while market players await the release of Bank of England minutes.
The pound was also down slightly against the euro at 1.118. Speculation about further quantitative easing keeps the pressure on the pound as we approach the New Year.
US Dollar – US Markets
The dollar traded near the highest in more than three months against the euro (1.425) and two months against the pound (1.594), before a report forecast to show new home sales rose in the US, adding to signs of recovery in the world’s largest economy.
It also neared an eight-week high against the yen (91.87) as the yield on US 10-year notes rose, boosting the advantage of holding Treasuries.
Euro – European Markets
The euro climbed 0.2 percent against sterling to trade at 89.40 pence this morning but dropped to a near three month low against the dollar.
The currency consolidated in narrow ranges through Asian trading hours as overall liquidity thinned out ahead of the Christmas holiday that will shut down most major exchanges later in the week.
Other Currencies – Highlights
The Yen pared losses against the dollar today (91.70) before Japanese markets closed for the Emperor’s Birthday holiday.
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