The pound continues to sail through the first week of December on a positive note, after reaching its strongest point against the US dollar and euro since summer at the end of last week. Sterling-watchers seem to have an easy job this week as it is a fairly quiet few days ahead for key data releases.
Meanwhile, the UK government braces for a wave of strikes set to hit the economy this winter. Between NHS workers, rail workers, civil service and BT/Royal mail, the UK is expected to face further disruption as workers protest for increased wages.
Over in the US, president Joe Biden signed a bill last Friday to avert a potential rail strike. He said the bill helped the US avoid a “cataclysmic economic blow”.
This week, markets are poised for the upcoming release of new car sales YoY data, as well as BRC retail sales data and the latest Halifax price index. While over in Canada and Australia, all eyes will be on central banks who will decide on interest rates.
The eurozone has cut its gas demand by a quarter as European countries find alternative gas sources to scrap reliance on Russia.
Recent Covid restrictions in China have eased over the weekend following nationwide protests which broke out towards the tail end of November. Beijing could in fact scrap the pandemic policy altogether. China’s president Xi told the European Council President, Charles Michel that “frustrated students were driving the protests after three years of zero-Covid”.
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