Smart Currency Rates and Comments 3rd December 2012 – US dollar data to be released this week
GBP/USD – 1.6035
The euro is in the ascendancy having gained five cents against sterling and seven cents against the US dollar since July. On Friday, sterling struggled across the board, hitting a 5 week low against the euro as optimism over the debt crisis in Greece drove the euro upwards. Furthermore, renewed confidence over a resolution surrounding the so-called fiscal cliff in the US caused global confidence to increase. This week is likely to see greater volatility in pricing, as influential Purchasing Managers’ Index (PMI) data comes out from the Manufacturing, Construction and Services sectors on consecutive days. Furthermore, Thursday’s interest rate announcement and decision on quantitative easing by the Bank of England could cause greater price action; however, both are widely expected to be kept on hold with most economists predicting another round of monetary easing in the New Year. Please call in to get a detailed update from your trader.
The US dollar had a mixed day on Friday as renewed confidence that the so-called fiscal-cliff situation could be sorted by its January deadline was marred by a raft of weak data being released. Inflation data, personal spending and personal income figures all came out below market expectations. This week we will see a lot of data released including manufacturing and non- manufacturing PMI data alongside US consumer sentiment figures which will identify the level of financial confidence amongst consumers. There is also a raft of employment related data released this week, culminating with the highly influential Non-farm employment data released on Friday. Get in touch now to take advantage of the most up to date price.