Daily Analysis: Greenback Rallies Against G3 Counterparts

Our daily analysis of EUR, GBP and USD.

DAILY ANALYSIS

GBP

• Bank of England delivered as expected yesterday voting to hold rates at 4.75%.
  • Unexpectedly 3 members voted for implementing a rate cut this time out whilst 6 voted to leave at the current levels.
• Woeful economic data continues to pour out of the UK. Retail Sales for November fell short of the 0.5% forecast with a final reading of 0.2%.
  • YoY figures slumped to 0.5% versus 2% in October.
• Little appetite for the pound at present as GBP/USD trading at 6-month lows in the 1.2500 handle.

USD

• The House of Representatives voted down a Donald Trump backed spending bill. Congress now has to secure a deal today to avoid a government shut down – the failed deal would have extended government spending to March 14.
• Gross Domestic Product for Q3 grew unexpectedly to 3.1% versus forecast to remain at 2.8%.
• Initial Jobless Claims came in below the 230k estimates at 220k.
• Core Personal Consumption Expenditures for November released last this afternoon.
  • MoM figures forecast to decline 0.1% to 0.2%.
• The greenback has gained momentum in the past 24 hours as the US dollar spot index reached 12-month highs above 108.40.
  • EUR/USD hit as low as 1.0350.

EUR

• Donald Trump has issued a warning to the EU that they must commit to buying ‘large scale’ amount of US oil and gas or they run the risk of facing tariffs.
• Eurozone Consumer Confidence for December released later this afternoon.
• EURGBP trades back above 0.8300.

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