Today's data releases | Key levels | |||
---|---|---|---|---|
Support | Resistance | |||
09:30 | UK finance loans for housing | GBP/USD | 1.3300 | 1.3550 |
15:00 | US pending home sales | GBP/EUR | 1.1125 | 1.1480 |
Market overview
The US Tax Bill was passed in time for Christmas and is now due to be signed by President Trump early in 2018. US yields continued to rise throughout the week helping the USD gain momentum. UK data was mixed, the week ended with an upward revision to Q3 GDP growth to 1.7% year on year, though the quarterly growth remained at 0.4%. The election in Catalonia resulted in the three separatist parties having enough seats for a small majority, but the separatists polled less than 50% overall so there is not a strong case for them to push for another referendum.
The United States imposed sanctions yesterday on two North Korean officials who are considered key to their country’s development of ballistic missiles. Yesterday also saw crude prices rise to levels not seen since mid-2015 due to a pipeline blast in Libya and a bullish budget forecast in Saudi Arabia.
The day ahead
As expected there is very little economic data to report on this week. The main data of note comes in the form of preliminary.German and Spanish inflation data on Fri 29th. Higher inflation readings across the Eurozone might well prompt more ECB talk about policy normalisation, with consequences for Eurozone (and other) financial markets. On today’s calendar we have UK finance loans for housing and US Pending home sales.
Thought of the day
Merry Christmas to all our clients today. The desk will be open normal hours today and we are on hand to discuss any currency related matters you may wish to discuss or if you would like to talk in more detail about what lies ahead for 2018 - please call 0800 055 6339.