Smart Daily Currency Note | US dollar continues to weaken across the board
GBP/USD – 1.6179
Sterling continued to have a split personality on Friday, managing to advance against several of its major trading peers, while losing ground against others. The release of strong German Services PMI data helped contribute to sterling losing further ground against its European partner, falling below 1.23 again. It was better news versus the US dollar, with sterling managing to continue its weekly gain against its American counterpart. There was very little data out of the UK at the end of the week to influence the currency. Expect more influence on the markets this week as Consumer Price Index (CPI) inflation data is released; expected to remain slightly above the Bank of England’s 2% target. Thursday will also see the release of Core Retail Sales data which will give a good indication into the current level of consumer activity and economic health in the economy in this very important time before Christmas. Call in now to see how this will affect sterling and to get a live price.
The US dollar continued to weaken across the board on Friday following last week’s announcement from the Federal Bank to inject more money into the economy and alongside the on-going Fiscal Cliff situation that is without resolution. Poor inflation data released on Friday showed that the Core (CPI) data had declined by more than forecast. This was after a US inflation report showed prices fell in November for the first time in six months, boosting expectations the Federal Reserve will stay on its "operation twist" monetary policy path. Today we have a quiet day on data coming out in the US; but, this week all eyes will be on Obama’s plan to tackle the Fiscal Cliff, especially following frustration and concerns from little progress being made last week. Building permits and existing home sales figures will also be released as well as the Philly Fed Manufacturing Index and Core Durable Goods Orders. Call in now for the latest news and live rates.