I hope you all enjoyed Christmas and politely ate every morsel of food that was available. As you can imagine, the markets have been very quiet following the festive period but as we are now open for trading again please do not hesitate to contact your broker for all of your currency needs.
Pound Sterling – UK Markets
It seems as though the UK markets are still digesting Christmas Dinner with the lack of news and movement around. Sterling hasn’t been dramatically affected much over the festive period. However, the Australian and US Dollar have both continued to strengthen further against the Pound.
December house prices are released later today and one would expect trends to follow a similar fashion to those before it and continue its negative downfall.
US Dollar – US Markets
Whilst the Dollar has taken a steady leap against Sterling, the guidelines are fairly false as the greenback has dropped to a 6 week low against the Yen. There have been clear signs that the economic recovery may be uneven. Furthermore, the currency continued to struggle against commodity currencies and now see’s itself weaker than the Australian Dollar.
However, on the upside, retail holiday sales have come in at a 5 year high, increasing 5.5%. Clothing and jewelry saw the majority of the spending as consumers showed signs of increased confidence. Overall though, the currency took a hammering and will need some good news over the next few days to claw back some of the losses.
Euro – European Markets
There is very little news coming out of the Euro zone at the moment which can only be good news for the flagging economy. The only issue worth noting is the fact that the European Central bank failed to fully neutralize the extra liquidity created by its bond purchases for the second time since the program began in May.
Other Currencies – Highlights
The Swiss Franc outperformed most of the major currencies and climbed to a record high against the US Dollar stamping its position as the current safe-haven currency. Furthermore, with pressure increasing in the Euro zone many believe that the Franc is set to benefit even further.
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