Although sterling kept its fighting attitude over the course of yesterday as it maintained gains against both the euro and US dollar, this morning has seen the pound relinquish those gains. This comes after an already shaky start to the year for the pound.
Yesterday, the UK housing market saw the number of mortgage approvals plummet to their lowest level since the peak of the Covid-19 pandemic. Data from the Bank of England revealed that approvals for house purchases in Britain fell to 46,100 in November from a revised 57,900 in October.
For the remainder of this week, market watchers will be keeping a close eye on several UK data releases including the S&P’s PMI, which is due shortly and the Halifax house price index YoY, which will be released tomorrow.
Between today and Friday, markets will be anticipating a variety of data releases which could impact the euro’s movement over the course of the coming days. Retail sales will be one to watch at 10am tomorrow followed by the European Commission’s economic sentiment. The economic sentiment indicator calculates the confidence level among manufacturers, service providers, consumers, retailers and constructors.
Over in the US, a weaker dollar will have to navigate several key data releases between now and the end of the week. The first will be balance of trade at lunchtime today, followed by non farm payrolls and much more on Friday.
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