US Economy Shows Clout

Thursday started off just as every other day has this week, with the euro marching on against the pound and US dollar. Retail sales for the UK didn’t help the pound, as the year on year figure came in at 0.9% compared to the expected 1.5%, showing consumers cutting back on the high street as inflation bites at the pockets.

The glum figure allowed the euro to gain yet further ground pushing to fresh lows against the pound, great for anyone who has sold in Europe and repatriating funds back, but not so great for those looking to buy in sunnier climes.

As we’ve mentioned a lot recently, the US dollar has been feeling the brunt of the euro’s strength so when Q3 GDP came out better than expected, market investors took some solace that all is not lost with the world’s largest economy. During afternoon trade the dollar made ground against both the pound and euro, which in turn took the pound/euro rates back up. The drop earlier in the day was reversed completely as sterling made back the half cent drop.

So today brings a busy week to a close and with only a few trading days left scattered between the festive holidays, it could be another volatile day. UK GDP is the key release for the day, while on the other side of the Atlantic, Canada also releases GDP, while the US has a few consumer related stats released. With the markets bouncing off the various major economic data, we could be in for another choppy day.

With that in mind, Currency Index will be closing at 1pm today and not re-opening until Thursday 27th, so please contact us early to secure any funds you might need before year end. Merry Christmas everyone….