US President has no shame, And don’t mention the “B” word, you’ll scare the markets

Today's Highlights

  • US rate hike? Maybe?

  • Trump banned from running charities in New York

  • Euro faring well despite disappointing German data


Current Market Overview

Sterling has had another narrow range day.  It is trapped around €1.11 and $1.26 with little obvious appetite for a push higher or lower right now. I suspect you know what the main concern is, so I am going to try to write a whole report without mentioning the ‘B’ word. We get inflation data today and a barrage of data tomorrow for the UK, along with a Bank of England (BoE) interest rates ‘on hold’ decision tomorrow. That may sound presumptuous of me to call that a day early, but can anyone really see the BoE making an interest rate change in amidst the melee of the Brex... (sorry, nearly broke my daily resolution).

Euro faring well despite disappointing German data

Meanwhile, the Euro is holding its own, in spite of dire German business sentiment indices yesterday. This morning’s German producer price index was poor, too, so there is not much to support the Euro if we get a catalyst that prompts a sell off.

Canadian Dollar chaos brings opportunities for buyers and sellers this afternoon

This afternoon brings Canadian inflation data, which is expected to be down on the previous month but perhaps not enough to lower the annual inflation rate. The Canadian Dollar is being influenced by the US Dollar’s frantic volatility and by commodity markets, which are equally unstable. There are opportunities to both buy and sell the CAD at reasonable levels within this unpredictability.

New Zealand Dollar buyers and sellers beware – take action before tonight’s growth data

Overnight tonight we will see New Zealand’s economic growth data. A slowdown from last quarter’s 1.0% growth is expected. generally the markets expect growth of around 0.6% on the quarter, so anything above or below that figure will strengthen or weaken the New Zealand Dollar. Overnight orders may well be the right tool to use.

Australian Dollar should strengthen overnight

Before the UK opens for business tomorrow, we will also have seen Australian employment data and that is forecast to reflect healthy growth; maintaining the unemployment rate at a very impressive 5.0%. The Aussie Dollar ought to strengthen if that is so.

Need an escape from the festive madness?

And a week today, it’ll all be over, the gazillions spent on food and drink will have been reduced to cold cuts, bubble and squeak and headaches and the gazillions spent on presents will have been separated into a very large bag of wrapping paper and packaging and a pile of things that need to be put away at some stage.  The Halo Financial team will be here on all but the statutory holidays to help with hangovers and gift returns… Only joking. We will be here, but only for your foreign exchange needs.  Call us if you need to escape from Aunty Vera and her dreaded mistletoe.

Probably from a Christmas Cracker...

A chap walks into a bar with a Great Crested Newt on his shoulder.
The barmaid says, “Oh he’s cute. What’s his name?”
“Diminutive,” says the guy.
“Why’s that?” says the barmaid.
“Because he’s my newt.”

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.