30 Dec 2015

Markets slow down ahead of New Year

United States Dollar: Unsurprisingly GBP/USD has traded a narrow range over the last 24 hours. Amid the relative quietness, US Pending Home Sales were released yesterday afternoon and came in under market expectations. The dollar weakened a touch on the news and GBP/USD pushed a little higher. The pair opens this morning at 1.4840. US Unemployment Claims and Chicago PMI are the main events today as far as the ever thinning markets are concerned.

We expect a range today in the GBP/USD rate of 1.4800 to 1.4900

Euro: EUR/USD has traded sideways since yesterday morning. It opens this morning at 1.0920. Spanish Flash CPI printed a bit weaker than market forecasts on Wednesday morning but it had little impact on the rate. Meanwhile, GBP/EUR has been climbing steadily and it trades at 1.3590 currently.

We expect a range today in the GBP/EUR rate of 1.3540 to 1.3620

Aussie and Kiwi Dollars: AUD/USD and NZD/USD have been quiet too although they have both spiked in the last hour as liquidity in FX markets withers away ahead of New Year celebrations. Investors will be a bit wary of Chinese data by way of Manufacturing and Non-manufacturing PMIs on 1st Jan. There might be a reaction come market opening on 4th Jan. Meanwhile, both GBP/AUD and GBP/NZD are a touch lower at 2.0280 and 2.1635 respectively.

We expect a range today in the GBP/AUD rate of 2.0200 to 2.0340

We expect a range today in the GBP/NZD rate of 2.1570 to 2.1710

Data Releases

AUD: No data

EUR: No data

GBP: Housing Equity Withdrawal q/q

NZD: No data

USD: Unemployment Claims, Chicago PMI

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