Friday 25th November -There was very little in the way of direction for the Pound at the end of the week. This was down to a lack of data although the currency was also impacted by a downturn in the market mood, causing the Pound to slip against its safer peers.
The Euro slipped as a result of mixed data while the final GDP growth rate for Germany was revised upwards for the third consecutive quarter. However, consumer confidence didn’t meet expectations and that didn’t help the currency. The single currency also had a negative correlation with the US Dollar, which also dented the Euro.
At the end of the week, the US Dollar rose, making it up for some losses earlier in the week. A risk-off mood also helped to give the Greenback a boost although this was limited while headwinds from the Federal Reserves also put a limit on any gains.
Thursday 24th November
The Pound gathered momentum during trading as hopes of a weaker recession helped to bolster the currency. Federal Reserve interest rate rises were expected to be less aggressive and that also helped to ease the pressure on the currency.
Improvement in the IFO business climate indicator in Germany was not enough to prevent the Euro from weakening. The currency also experienced further losses during the afternoon as the European Central Bank expresses concerns about a possible recession in Europe.
It was a quiet day for the US Dollar as American markets closed for the Thanksgiving holiday. As a result of a lack of data, it looks like risk appetite might be the main driver.
Wednesday 23rd November
The Pound moved higher as UK PMI surveys were better than expected, helping to boost the currency. While private sector activity continues to contract, the overall PMI score saw improvements for the first time since the middle of the year.
It was a mixed day for the Euro as it initially fluctuated following ongoing fears surrounding the Ukraine-Russia conflict and better-than-expected PMI results. During the afternoon, risk appetite rose and that saw the Euro lose ground against some of its peers.
The US Dollar took a sharp downturn as it lost more than 1% against a number of peers following the release of disappointing US PMI Results. Minutes from the Federal Open Market Committee meeting also added to the downturn as they indicated the Fed officials are keen to slow down rate rises.
Tuesday 22nd November
It was a slow start to the day for the Pound as it dropped initially following concerts about the UK economy and borrowing. Despite this, it managed to recover through the day as two workers’ unions put a hold on strike action and UK mortgage rate drops, both of which helped to bolster the currency.
It was a similar start to the day for the Euro as concerns around gas shortages and rising prices weighed heavily on the single currency. However, some of these losses were recouped during the afternoon as Eurozone consumer confidence data came in higher than expected.
The US Dollar fell back as traders moved away from the safe-haven currency as a result of improvements in market mood. Comments from the Federal Reserve also pushed down expectations for aggressive interest rate increases, both of which placed pressure on the currency.
Monday 21st November
The Pound experienced a mixed day as a lack of data meant that the currency had a lack of direction. Markets continued to take in the Autumn statement released the previous week although the Pound struggled to find any momentum.
It was a slow start for the Euro following a sharp drop in the German producer price inflation. This could ease pressure on the ECB to continue raising interest rates but could also indicate that Germany is heading into a recession.
The US Dollar surged higher as a result of a drop in mood which made the safe-haven currency more appealing to traders. As further Covid restrictions are implemented in China, it has resulted in concerns surrounding a possible economic downturn that could have an impact on the Greenback.
Currency Ranges for the week:
GBP/USD: Low: 1.17814 High: 1.2151
GBP/EUR: Low: 1.15004 High: 1.16624
EUR/USD: Low: 1.02781 High: 1.04542