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The pound weakened against major currencies yesterday
The pound had a mixed Boxing Day, weakening against the US dollar and euro, though faring better against the Canadian dollar and Japanese yen.
There was little data coming out, but Spanish producer prices rose by 0.9%; their first rise for 20 months and well above expectations. Energy prices rose in particular, by 2.4%.
The dollar index (DXY) slipped slightly from the two-year high it reached last week, as jobless claims were lower than expected and the market continued to foresee a dovish approach from the US Federal Reserve.
There is very little data coming out until after the New Year break, but things will warm up quickly in January with German employment and inflation data.
In business news, there are reports that hedge funds are betting on UK retailers having a very poor Christmas trading period, with a likely impact on their share prices. Ocado Group, Kingfisher and Sainsbury’s have all been targeted.
There was a report out saying that the residential exodus from London to the shires that reached its peak in the pandemic has fallen to its lowest since 2013. Estate agent Hamptons says they were put off by rapidly rising prices outside of the capital.
Make sure any upcoming transactions are protected against the risks of sudden market movements. Secure a fixed exchange rate now with a forward contract; call your Business Account manager on 020 3918 7255 to get started.
GBP: Pound struggles on Boxing Day
Sterling weakened against the US dollar and euro yesterday, while the markets were closed in the UK. There is no data for the markets to consider today, but we will get a reading for house prices from the Nationwide next Thursday, with the expectation of a final figure for 2024 of a 3.8% rise in prices.
GBP/USD past year
EUR: Euro on the rise
There was a positive post-Christmas boost to the euro, with rises of up to 0.6%, notably against the pound, yen and Swiss franc. Today there will be a reading for Spanish retail sales and on Monday for Spanish inflation.
EUR/USD past year
USD: Mixed day for US dollar
It was a generally positive Boxing Day for the dollar, strengthening against the pound, CHF and JPY, but with a small fall against the Indian rupee and stability against the euro.
USD/GBP past year
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