The pound began the festive week on the back foot after UK GDP growth was revised down to zero in the three months to October.
A sleepy day for currency markets was marked by thin trading volumes and a general sense of respite. A brief fightback for the pound and the euro against the US dollar faded in the afternoon, as whatever transactions took place shaded towards the risk averse.
Among those revised UK GDP figures, one brighter spot came from business investment, which increased by 1.9% quarter-on-quarter — well above the expected 1.2% increase.
Subdued US durable goods orders failed to make any serious impression on the US dollar. New orders for durable goods fell by over 1% in November having increased by 0.8% in October. Once that failed to change matters, the handful of other final reads for November were always unlikely to distract markets from swapping work for gift-wrapping with a limited amount of fuss.
In other news, the British chamber of commerce made 13 recommendations on how to fix the UK-EU trade pact. Among those measures was a call to reinstate “comprehensive” youth mobility, more flexibility for business travellers and a link to the UK and EU carbon trading schemes.
On behalf of everyone at Smart Currency, we wish all our readers a joyful festive period. Our offices will be open as usual on Friday (27 December), so please do get in touch with us should you have any currency requirements.
Make sure any upcoming transactions are protected against the risks of sudden market movements. Secure a fixed exchange rate now with a forward contract; call your account manager on 020 7898 0541 to get started.
