Market Update 28th November – 2nd December

Where you will be able to keep up to date with all the latest changes in the currency market

GBP

Last week we saw the Manufacturers CIPS PMI released last week that came out higher than expected, this saw the Pound strengthen 0.5% against the EUR and 0.5% against the USD. We continued to see the pound strengthen against both the EUR and USD throughout the last 2 weeks we have only seen the GBP increases against other major currencies. USD rates are the best we have seen within the last 4 months and against the EUR the best rate we have seen this month. This week we do not have any scheduled significant piece of data due to be released for the Sterling, but this does not mean we can’t see a big change in the market as there is still due to be a large amount of volatility in the markets. The data coming out for the Eurozone and the US can also play a part in the market movements of the pound, depending on the data and its results, we can see the pound weaken or strengthen against the EUR and USD.

EUR

Last week we saw GDP figures be released in Germany, this saw an increase in contrast to expectations, although this was a positive outcome for the EUR, it still wasn’t enough to strengthen against the dominant GBP or the USD. We also had the consumer confidence index released, the results showed a big increase, this managed to strengthen the EUR slightly against the USD by 0.25% and 0.2% against the GBP. This week we have HICP data for the Eurozone being released. This measures the level of inflation in the eurozone, now the inflation levels in the Eurozone are reading at 10.6%. Should we see a decrease to the levels of inflation in the results then this will strengthen the EUR, should we see an increase then this can weaken the EUR. against the GBP and USD

USD

Data released last week for the USD was the Durable goods order, this showed a big increase of 0.7% from last months readings, this was a much bigger increase than was expected, but because of the gradual weakening of the USD these past few weeks, all this reading could do is slow the drop against the EUR and GBP, the rates dropped 0.25% against the EUR and 0.3% against the GBP. This week holds key data that could help boost the dollar back after its weak last few weeks, we have GDP figures being released this Wednesday, this measures the country’s economic output. Should we see an increase then this will be seen as positive for the USD and if we do see a decrease then this can show as bearish for the USD. We also have Non-farm payrolls being released on Friday, this shows the number of new jobs that were created in the last month, released on the first Friday of every month, the change in payrolls can be extremely volatile, this is due to the high relation with the economic policy decisions made in the US. The number of positions are related to overall performance of the economy. Should we see an increase in the number of new positions this could positively affect the USD, should we see a decrease then this could weaken the USD.