Market Update

Last week’s data releases provided strength for the Pound after a pretty downbeat month or so on the market- showing that UK PMI numbers were back over the 50 area, which means that the UK economy is no longer contracting- we may not see massive growth over the next year, however, a stagnating economy is much better than one in recession- which looks more likely for the Eurozone currently. On this basis, we can see GBPEUR exchange rates remaining positive for the here and now, with the BoE set to keep rates on hold until potentially the second half of 2024, as the UK economy strengthens, we can see that being attractive to many investors.

With December generally being a quiet month on the data front- the last week of December could be volatile generally with trade, and though we do not have heaps of data coming out, I have detailed below our main releases- on Monday we have a speech from ECB President Lagarde, we are not expecting any policy shift in regards to interest rates so I am not expecting to see much market movement on Monday on the Euro- however recent negative data may be mentioned which could potentially have an effect, but there is only a small chance of this.

On Tuesday we have German consumer confidence, where unfortunately we are expecting negative numbers, and as Germany makes up for 40% of the European economy then this could weaken the Euro slightly, the rest of Tuesday is filled with U.S based data (Consumer Confidence) and various Fed speakers- overall, not a volatile day to be expected.

On Wednesday we have the RBNZ interest rate decision where we are not expecting any movement on interest rates, later in the day we have European consumer confidence, UK mortgage approvals (Expected lower), and most importantly, U.S GDP numbers which are expected in pretty high which would be positive for the U,S and positive for markets.

On Thursday we have Eurozone core inflation with it expected to drop further to 3.9% which is very positive for the Euro, anything lower than this will boost the Euro more especially against the Dollar- we also have PCE Price index data out of the U.S, also expected lower, which will be positive for the U.S.

On Friday we have ISM Manufacturing PMI out of the UK which is expected to come in positive, and a speech from Fed Chair Powell on Friday afternoon. All in all it could be a volatile week so please don’t hesitate to contact me if you require any addiitonal guidance.

Leave a Reply

Your email address will not be published.

What's Going On?

Currencies 4 You Ltd is a company registered in England and Wales (registered no. 06866898). Registered office: Regus House Victory Way Admirals Park, Crossway, Dartford, Kent, DA2 6QD. Currencies 4 You Ltd Payment and for clients based in the United Kingdom and rest of the world, payment services for Currencies4you are provided by The Currency Cloud Limited. Registered in England and Wales No. 06323311. Registered Office: Stewardship Building 1st Floor, 12 Steward Street London E1 6FQ. The Currency Cloud Limited is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money (FRN: 900199).For clients based in the European Economic Area, payment services for Currencies4you are provided by CurrencyCloud B.V.. Registered in the Netherlands No. 72186178. Registered Office: Nieuwezijds Voorburgwal 296 - 298, Mindspace Nieuwezijds Office 001 Amsterdam. CurrencyCloud B.V. is authorised by the DNB under the Wet op het financieel toezicht to carry out the business of an electronic-money institution (Relation Number: R142701). For clients based in the United States, payment services for Currencies4you are provided by The Currency Cloud Inc. which operates in partnership with Community Federal Savings Bank (CFSB) to facilitate payments in all 50 states in the US. CFSB is registered with the Federal Deposit Insurance Corporation (FDIC Certificate# 57129). The Currency Cloud Inc is registered with FinCEN and authorised in 39 states to transmit money (MSB Registration Number: 31000206794359). Registered Office: 104 5th Avenue, 20th Floor, New York, NY 10011. Payment Services are provided by Equals Connect Limited, registered in England and Wales (registered no. 07131446). Registered Office: Vintners’ Place, 68 Upper Thames St, London, EC4V 3BJ. Equals Connect Limited are authorised by the Financial Conduct Authority to provide payment services (FRN: 671508). Payment services for Currencies 4 You Ltd are provided by Sciopay Ltd. Sciopay Ltd is a company incorporated in England & Wales. Registration No: 12352935. Sciopay Ltd is licensed and regulated by HMRC as a Money Service Business (MSB). Licence No: XCML00000151326. Sciopay Ltd is authorised by the Financial Conduct Authority as an Authorised Payment Institution. Firm Reference Number: 927951. Currencies 4 you's payment and foreign currency exchange services are provided by Global Currency Exchange Network Ltd T/A GC Partners. Global Currency Exchange Network Ltd is authorised by the FCA under the Payment Services Regulations, 2017 (FRN: 504346). Registered as a Money Services Business, regulated by HM Revenue & Customs ("HMRC") under the Money Laundering Regulations 2017. (Registration number is 12137189). Registered in England and Wales. Company number 04675786. Registered Office 3rd Floor 100 New Bond Street, London, England, W1S 1SP. | Terms and Conditions | Privacy Statement | Careers