Weekly Report – 5th December – 9th December 2022

Friday 9th December -The Pound found some success at the end of the week as a positive market mood helped to give the currency a boost. Furthermore, news that the regulations for the financial services industry would be overhauled by the government also pleased investors.

currency news

 

The Euro slipped during trading after an improvement in risk appetite left the single currency struggling. The ongoing war in Ukraine also caused problems for the EUR exchange rates.

It was a volatile day for the US Dollar although it eventually finished on a downward trend as the market mood improved. The fluctuation was put down to the US PPI data which came in above forecasts although it did add to the uncertainty and that caused problems for the Greenback.

Thursday 8th December

The Pound lost ground against a number of peers as a lack of economic data left the currency exposed. With imminent rail strikes and postal strikes due to bring the country to a halt over Christmas, there are fears that the economy could suffer.

It was a mixed day for the Euro as the currency experienced some pressure following an improvement in the market mood. However, the single currency did make up ground against a number of weaker peers, helping to limit losses.

The US Dollar also dropped after the Greenback was shunned by investors as a result of an improvement in the market mood. There was also no support from the initial jobless claims figure as it aligned with market forecasts.

Wednesday 7th December

The Pound edged higher and made up ground against a number of peers as a new UK-US Gas deal gave the currency a boost. Despite this, gains were limited as concerns about the economy continued to ease optimism.

At the start of trading the Euro experienced some success as a result of German industrial production and Eurozone GDP growth, both of which beat forecasts. Comments made by Russian President Putin did cause support for the single currency to dwindle during the afternoon.

A drop in US Treasury yields caused the US Dollar to drop as demand for the currency fell. As the day progressed, the safe-haven currency did improve after a cautious market mood helped to boost the currency.

Tuesday 6th December

The Pound fluctuated after the markets suffered from volatility although the currency did manage to trend higher throughout the day. This came following a dip in UK food inflation which increased hopes that the cost-of-living crisis is improving.

The Euro made ground during trading following the release of data that showed a better-than-expected recovery in German factory orders. The increase of 0.8% month on month during October helped to improve hopes that the recession might not be as bad as expected.

An upbeat market mood limited the appeal of the US Dollar, causing it to drop at the start of the day. Despite this, the market mood soured and this helped the safe-haven currency to recover.

Monday 5th December

There was very little in the way of directional bias for the Pound as the final services PMI met expectations. This meant that the currency would react to the global market mood, causing it to drop against its safer peers and rise against the riskier peers.

The Euro strengthened as the European Central Bank made hawkish comments surrounding a rise in interest rates of a minimum of 50 bps in two weeks.

The US Dollar edged higher following the USM non-manufacturing PMI came in above forecasts, as it rose from 54.4 to 56.5. Along with this, there was also a rise in US factory orders which increased by 1% in October.

Currency Ranges for the week:

GBP/USD: Low: 1.21109 High: 1.23185

GBP/EUR: Low: 1.15713  High: 1.16709

EUR/USD: Low:1.04486  High:1.05941

NewbridgeFX:
Products

NewbridgeFX offers a specialist service in the deliverable foreign exchange market, promoting a range of products and services, available online or over the phone. Our products have been designed to meet the needs of our clients. A lot of these products are ways for businesses, and individuals, to manage and mitigate currency risk, and are used frequently during times of increased volatility. Alongside up to date foreign exchange related market news, which works in tandem with our range of products. 

Spot Contract

Lock in an exchange rate for immediate onward settlement. Funds can be received the same day.

Forward Contract

Lock in an exchange rate today, but for settlement at a later date that suits you, up to 12 months in the future.

Market Order

We monitor the markets real time and take action to trade between currencies when your desired rate is achieved.

Rate Alerts

Set an alert for phone or email notification when an exchange rate has be achieved to take advantage at the best time.

NewbridgeFX