Pound News: GBP Bolstered by GDP Figures.
The Pound (GBP) ended the session on a bit of a positive note last week as the UK’s latest GDP figures saw year-on-year GDP beat expectations, with the UK economy growing 1.7% against forecasts for a more modest 1.5%.
However, denting gains Sterling’s slightly was the realisation that this was still the slowest annual growth in over 4 years.
Looking ahead to this week the Pound may remain fairly muted due to a lull in domestic data and thin trading volumes over the Christmas period, although as always the currency will remain sensitive to any Brexit developments.
Euro News: EUR Tumbles Following Catalan Election
The Pound to Euro (GBP/EUR) exchange rate strengthened on Friday as the single currency was rocked by the result of parliamentary elections in Catalonia.
The snap-election saw the pro-independence parties secure a narrow majority, a major boost for the independence movement and prompting some uncertainty over whether the region may attempt to break away from Spain again.
It looks set to be relativity quiet session for Eurozone data as well this week, with the only really notable report being Germany’s latest CPI figures, with economists forecasting that inflation will have dipped in December.
US Dollar News: US GDP Weighs on US Dollar
The Pound to US Dollar (GBP/USD) exchange rate remained on strong footing at the end of last week’s session following Thursday disappointing US growth figures.
Investors remained dejected by the news that US GDP was revised to 3.2% in the third quarter, down from the 3.3% forecast in a previous estimate.
There will also be a lack of major data releases from the US this week, likely leaving investors to focus on Trump’s tax bill and how it may impact the US economy in 2018.
Canadian Dollar News: CAD Surges as Inflation Rockets
The Pound ended last week’s session around a cent lower against the Canadian Dollar (CAD) as the pairing failed to recover following Canada’s bumper inflation reading on Thursday.
Canadian inflation rocketed up from 1.4% to 2.1% in November, beating expectations it would only reach 2% and prompting hopes of further rate hikes from the Bank of Canada (BoC) next year.
While Canada will not release any further data until the New Year, the ‘Loonie’ could still see some movement this week if there are any major movements in oil prices.
Australian Dollar News: AUD Strengthened by Rise in Risk Appetite
The Pound to Australian Dollar (GBP/AUD) exchange rate struggled to advance on Friday as the dip in the US Dollar lent strength to the ‘Aussie’, while the uptick in the Canadian Dollar also led to an uptick in risk appetite, further bolster the currency’s appeal.
The only notable data set to be released by Australia this week will be the new homes sales figures on Friday, likely prompting any movement in the ‘Aussie’ to be driven by commodity markets.
New Zealand Dollar News: NZD Strengthened by Better than Expected GDP Figures
The Pound New Zealand Dollar (GBP NZD) exchange rate told a similar story to GBP/AUD at the end of last week as the pairing struggled in the face of improving risk appetite.
Looking ahead, a complete absence of New Zealand data this week could leave NZD static.
Wednesday, 27 December, 2017
09:30 UK BBC Mortgage approvals
15:00 US Consumer Confidence
Thursday, 28 December, 2017
07:00 UK House Prices
13:30 US Advance Goods Trade Balance
Friday, 29 December, 2017
13:00 DE Inflation
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