The Australian dollar trended lower through the majority of last week, with the risk-sensitive currency struggling to attract support as a gloomy market mood prevailed through most of the session.
Although December’s finalised services PMI saw a positive revision from 49.3 to 50.0 this failed to paint an encouraging picture of the economic outlook.
With the service sector ending 2019 in a state of stagnation, gross domestic product appears on track for a similarly underwhelming performance.
While economic anxiety over the prospect of a potential cliff-edge Brexit appeared to ease in December, investors remain wary ahead of the next round of negotiations.
Unless markets see reason to believe that the UK and EU can agree a new trade deal before the end of the truncated transition period support for the pound could falter in the days ahead.
On the other hand, if the latest Halifax house price index and UK labour productivity data surprises to the upside, this could help GBP exchange rates recover some ground.
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)