GBP flat ahead of Thursday’s GDP data
The plethora of central bank decisions that hit us last week made all exchange rates lively. Today is a bit more subdued and that is true for the pound as well. Other than the industrial trends orders report from the Confederation of British Industry, there is no UK data to get the party started. That will remain the case until Thursday when we will see the next iteration of the quarter three economic growth data for the UK. For now, the GBPUSD rate is static at $1.2200 and the GBPEUR rate is pretty lethargic around €1.1470.
Euro makes minor gains of German business sentiment
Three separate business sentiment indices were published this morning and all three showed healthy improvement, with the December ratings beating those of November and pushing above forecast levels as well. That has given the euro a bit of a spring in its step as we await wages data for the eurozone as a whole. The EURUSD rate is up half a cent this morning to $1.0640 but that is slap bang in the middle of the range this pair has occupied since last Tuesday. There is a distinct lack of eurozone data this week but we will see GDP data from the US and the UK and, there will undoubtedly be volatility relating to traders winding down positions ahead of the Christmas break. In essence, some of the volatility we will see this week won’t look at all logical.
NZD holds its own ahead of trade data
The New Zealand dollar has had a few strong days and has held onto those gains this morning. The GBPNZD rate is down to NZD 1.91, after spiking to NZD 1.9385 on Thursday. Traders are preparing for this evening’s New Zealand international trade data as well as the Westpac consumer sentiment index. The Kiwi dollar has been quite susceptible to fluctuations in the trade data of late, so don’t be surprised if we see a very volatile overnight trading session, especially if the figures are considerably different from the October numbers. Those showed the largest trade deficit figure on record and those records extend back to the 1970s. Anything better than a deficit of NZD 12.88 million would be beneficial for the NZD.
