The pound had a mixed Boxing Day, weakening against the US dollar and euro, though faring better against the Canadian dollar and Japanese yen.
There was little data coming out, but Spanish producer prices rose by 0.9%; their first rise for 20 months and well above expectations. Energy prices rose in particular, by 2.4%.
The dollar index (DXY) slipped slightly from the two-year high it reached last week, as jobless claims were lower than expected and the market continued to foresee a dovish approach from the US Federal Reserve.
There is very little data coming out until after the New Year break, but things will warm up quickly in January with German employment and inflation data.
In business news, there are reports that hedge funds are betting on UK retailers having a very poor Christmas trading period, with a likely impact on their share prices. Ocado Group, Kingfisher and Sainsbury’s have all been targeted.
There was a report out saying that the residential exodus from London to the shires that reached its peak in the pandemic has fallen to its lowest since 2013. Estate agent Hamptons says they were put off by rapidly rising prices outside of the capital.
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