Sterling rallied to one month highs against the Dollar and Euro yesterday. Markets turn quiet ahead of the holidays.
December 24, 2021
GBPSterling continued its rally yesterday, trading above 1.3400 against the Dollar for the first time in one month as risk appetite continued to improve. The advance in cable is the best three-day run since May. The pound also surged against the Euro, up 1% during the European session before consolidating around the 1.1840 level.EUR
EURUSD is little changed this morning, testing the key 1.1340 level of resistance as markets turn thin ahead of the holidays. The pair is up 0.78% on the week so far.
The Omicron variant continues to spread throughout Europe, with countries now racing to step up their booster campaign. Germany, Italy and France have currently boosted 25-30% of their population, whilst Spain lags behind with only 10% have received the additional dose.USD
The Dollar was broadly unchanged yesterday, continuing to trade just above the 96 level. A strong flurry of US data continued with Consumer Sentiment improving, printing at 70.6, against expectations of 70.4. Jobless claims signalled the labour market is healing further against the pandemic, improving on last months figure. Consumer spending, after adjusting for inflation, was little changed, printing at 0.6%. Solid data improved sentiment further, with the S&P 500 hitting an all time high.ASIA/PACIFIC
The Yen slipped to one month lows as liquidity shrunk ahead of the Christmas holidays. USDJPY trades at 114.38 at time of writing, up 0.7% on the week. The Australian and Kiwi Dollars both pulled back from recent highs as investors removed riskier bets ahead off the holidays.ILS
USDILS is little changed this morning around the 3.1500 level, up 0.88% on the week so far.Data & EventsJapan - Housing Starts
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