It is always difficult to know how sterling will move in the period between Christmas and the New Year given the lack of data releases plus the fact that so many people are on holiday.
But we do find sterling pushing up towards multi year highs against the euro as we approach 2015 and close to lows last seen against the US dollar in 2013, plus we see sterling gaining ground against the commodity backed currencies as commodities prices continue to fall. There is also a danger when trading volumes are low for exchange rates to move quickly when the data that is released doesn’t meet expectations or unexpected events happen.
Friday, the first day of trading in the New Year, does have a raft of UK data being released, including the Purchasing Managers Indices for manufacturing which is expected to be just ahead of the previous month’s figures, which means that we could have a lively start to the New Year for sterling.
Please keep in contact with your trader over this period so that you don’t get caught out by any sudden and unexpected exchange movements.