Despite falling away during early trading yesterday, sterling recovered well throughout the day to erase Monday’s losses against both the euro and US dollar. UK home prices were shown to have grown by the slowest rate in more than a year in December, showing only a 7.2% rise. Sterling rose against the US dollar, however, as former Federal Reserve Chairman Greenspan warned that the US economy was still sluggish, and that inflation would be a concern moving forward.
Positive movement was also seen against the euro, following confirmation that the Greek parliament’s refusal to accept the Greek prime minister’s nominee for the presidency would trigger a snap election in late January. Uncertainty over how this could affect Greece’s repayments of their bailout package saw the euro struggle throughout the afternoon.
Today sees US unemployment claims take centre stage, while a bank holiday in Germany could result in lower euro trade volumes.
So please call your trader today to check what is happening to the euro, US dollar and other currencies against sterling and see if there are any buying opportunities as we approach the year end.