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Pre-Christmas slowdown on currency markets

Currencies Direct December 21st 2016 - < 1 minute read

This week trading sessions have showed quite a lack of action, increasing the feeling of a pre-Christmas slowdown. Yesterday, Sterling remained fairly weak against most other currencies and has kicked off this morning with a general downtrend.

In terms of the rest of the day’s currency market moves, the dollar managed to retain its firmer tone, strongly supported by the hawkish comments from Fed Chair Yellen earlier in the week. While Sterling spent much of the day on the back foot, the euro managed to grab a little bit of upward momentum.
 
Rise in oil prices supported the commodity currencies

In other markets, a rise in oil prices provided some headlines yesterday. Brent oil saw a 0.8% pick-up, moving the price per barrel back up above $55. This news provided some decent support to the commodity currencies, including the Russian ruble and Canadian dollar.
 
European markets to open pretty bearish

Looking at EURUSD, although the pair recovered as yesterday progressed, we’re starting this morning fairly unchanged from its opening position 24 hours ago.
Furthermore, European markets are set to open pretty bearish today after German authorities have confirmed that the truck ambush on a Berlin Christmas market on Monday had been a terrorist attack. Further terrorism threats continue to plague the EU and could begin having a bit more of a direct effect on market tones.
 
Data to come

Looking at today’s macroeconomics, the Public Sector Net Borrowing figures from the UK are released this morning, and later this afternoon, we’ll see the Eurozone consumer confidence (3PM) and US Crude Oil Inventories (3:30). Overall, it’s expected to be another quiet day and most likely will continue to trade the current trend.

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