By Ashley Finill
As we come towards the end of the second working week of 2024, the currency markets are back into full flow after the festive period, as data releases again start to take control of market movements. This week, Sterling has managed to hold on to the gains made throughout last week although some weakness for the pound is present as the currency saw a slight drop off in yesterday’s trading, albeit around half a cent off both the euro and US the Dollar. Yesterday afternoon the US released their inflation figure for December, which has risen to 3.4% from November’s figure of 3.1% to the surprise of economists. The Fed have an inflation target of 2% by the summer but has now seen a setback after yesterday’s announcement and has halted any action for interest rate cuts which had been previously mooted for March. The inflation figure announcement paved way for marginal gains for the Euro and Sterling which could aid a good end of the week for the pound.
Remaining data today
Although we have one day left in the working week there still are a couple of important data releases from both the US and UK. Starting in the UK, as this morning at 7am the GDP figure has been announced and it’s a big positive for the UK economy as a figure 0.3% was posted, crawling back from October’s -0.3%, the consensus was a figure of 0.2% but has beaten expectations and as a result the Pound has seen been give a slight nudge against both the Euro and the dollar this morning to give it a good head start into Friday’s trading. Into the afternoon at 1.30pm the US release Producer Price Index is to be release which is expected to contract from last month’s figure which again could put the US dollar on the back foot into Friday’s afternoon trading. Should you have any requirements today for Euros or Dollars it may be prudent to get in contact with your currency consultant today to discuss your options.