This morning is the first update of 2022 and I just wanted to use this opportunity to wish everyone a Happy New Year from all at WorldFirst. And if you are a currency buyer, it appears to be good news coming into the second week of the year as momentum is building around the pound, which continues to gets stronger. Currently heading towards the 1.20 mark against the euro, the rate has not been here since February of 2020, almost 2 years ago. Of course, we now know the sell off which followed at the start of the Covid pandemic, with GBP-EUR shedding near 12.2% in a months’ time. Against the dollar, sterling is also gathering pace north as the pair makes a run for the 1.36 handle. 10 of the previous 13 days has seen the rate build to 1.3588 at the time of writing.
Friday saw the first Nonfarm Payroll release from the States, which came in underwhelmingly lower than predicted in December. This morning will see the release of employment data from the EU which is the only notable release today, before a busy week on the data calendar. The highlight of the week for those in the UK will be the GDP release early Friday morning. Friday also sees retail sales data from the US through December, which includes the key Christmas period. The dollar needs some strong readings to fight back against both the pound and the euro, where the pair has been stuck in a rough 2 cent channel since the middle of November.
Have a great day.
Author: Jack Nicholls, Senior Relationship Manager.
Whilst every effort is made to ensure the information published here is accurate, you should confirm the latest exchange rates with WorldFirst prior to making a decision. The information published is general in nature only and does not consider your personal objectives, financial situation or particular needs. Full disclaimer available here.