Foremost Currency Group

Make the most of your currency

Talk to our friendly team:+44 (0)1442 892060

US Dollar Tumbles as US Consumer Sentiment Plummets

Pound News: GBP Subdued as Boxing Day Sales Fail to Impress

The Pound (GBP) had a bit of a mixed day on Wednesday with the return of UK investors after the extended weekend doing little to bolster the currency.

Markets were particular dejected by reports suggesting that there had been a significant decline in footfall for Boxing Day sales, while a release from the Resolution Foundation suggesting that wage growth was unlikely to close the gap with inflation anytime in the near future also hurt Sterling sentiment.

Looking to later today the Pound may be forced to retreat this morning as economists forecast that UK mortgage approvals will have fallen in November.

Euro News: EUR Supported by Rebound in Spanish Retail Sales

The Pound to Euro (GBP/EUR) exchange rate continued to fluctuate on Wednesday as trading volumes remained thin due to the lull in activity over the Christmas period.

However the single currency was able to find some gains following the release of Spain’s latest retail sales figures, which saw sales growth rebound from -0.8% to 1.3% in November.

The Euro looks set for a difficult day of trading today as a lull in impactful data leaves the single currency a little directionless.

US Dollar News: USD Weakened by Poor Consumer Confidence

The Pound to US Dollar (GBP/USD) exchange rate rocketed higher on Wednesday as investors remained pessimistic towards the US talks cuts signed off by Trump last week.

Also weakening the US Dollar was a larger than expected fall in the latest US consumer confidence figures, with the index plummeting from 129.5 to 122.1, falling well below the more modest decline of 128 predicted by economists.

Meanwhile the US Dollar may find itself trending lower again on Thursday with the release of the MNI Chicago Business Barometer, with the PMI expected to have tumbled from 63.9 to 62 in December.

Canadian Dollar News: CAD Strengthened by Rising Oil Prices

The Pound found itself sliding against the Canadian Dollar (CAD) yesterday as the latter was lifted by an uptick in oil prices.

Oil prices surged to a new multi-year high following a pipeline explosion in Libya and while prices retreated again by the end of the day it was not enough to pull the rug from underneath the ‘Loonie’.

With the next domestic data release set for the New Year, any movement in the Canadian Dollar over the next couple of days is likely to continue to be reliant on oil markets.

Australian Dollar News: AUD Strengthened by Decline in USD

The Pound to Australian Dollar (GBP/AUD) exchange rate fell by around half a cent on Wednesday as the ‘Aussie’ strengthened on the back of the US Dollar’s weakness.

The Australian Dollar may be able to build on these gains again later today as Australia releases its latest housing data, with a possible uptick in New Home Sales in November likely to strengthen the currency.

New Zealand Dollar News: NZD Rises as Risk Appetite Grows

The Pound New Zealand Dollar (NZD) exchange rate largely mirrored the movement in the GBP/AUD pairing yesterday as the ‘Kiwi’ was lifted by a decline in the US Dollar and the subsequent rise in demand for high-yield currencies.

However the New Zealand Dollar may find it difficult to continue pushing higher over the next couple of days as a complete lack of any economic data until the New Year will leave the currency struggling to find momentum.

Upcoming Data

 

Thursday, 28 December, 2017

09:30              UK BBA Mortgage approvals

13:30              US Advance Goods Trade Balance

 

Friday, 29 December, 2017

13:00              DE Inflation

James Spurway

Currency Dealer

01442 892 070

© Copyright 2013 to 2018 | Foremost Currency Group Ltd | All rights reserved