Weekly Round-Up & The Week Ahead

Weekly round-up and a look at the week ahead for EUR, GBP, and USD.

USD

Last Week we witnessed a light ending to the week for the greenback - GBPUSD dropping back under the 1.2700 level. The PPI figures out on Thursday showed strong signs in November up from October surpassing its forecast, along with Initial Jobless claims coming out at 242k above the estimate of 220k.

This week we will head into the final week before Christmas as many of the global economies wind down, the final week will see a flourish of data to cap 2024 off, with the Fed's interest rate decision due out on Wednesday, markets will be looking for guidance as we head into 2025 along with Trumps inauguration taking centre stage.

Data for Today:
14:45 - USD Flash Manufacturing PMI Forecasted at 49.4
USD Flash Services PMI forecasted at 55.7

EUR

Last week Political and economic uncertainty continued to draw headlines as Centrist Francois Bayrou named as Frances’s New Prime Minister, he is a well-known figure in French politics and has been for decades, however he will face a difficulty in leading a battered and fractured French Parliament.

Today we had Flash Manufacturing PMI figures for France and Germany, both data sets for December disappointed while the Services sector returned to expansion. Manufacturing PMI in the Eurozone’s top economy dropped to 42.5 this month, compared to November’s 43.00 while missing the estimates, however we did see a rebound in Services PMI to 51.00 up from previous 49.3 in November.

Apart from this morning’s Eurozone PMI release, there is no other data due today.

GBP

Last week was very quiet on the data front for the United Kingdom which led to the Pound driving into a northerly direction maintaining a healthy standpoint above the 1.2700 on GBPUSD and experiencing highs on GBPEUR and holding above the 1.2100 level.

The Pound heads into an action-packed week, where we will hear the final forward guidance and the final Bank of England interest rate decision. For the pound to stabilise and hold a stronger position against its counterparties, this week’s data must beat expectations, and the Bank of England must keep interest rates unchanged and signal it is content to do the same in Quarter 1 of 2025.

Data for Today:

09:30 – GBP Flash Manufacturing PMI expected at 48.4
GBP Flash services PMI expected at 50.9

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