Financial News from the Foremost Currency Group, 11th December 2017
In this week's Report:
Pound News: GBP Gains Undermined by Trade Delays
The Pound (GBP) initially jumped against the other majors on Friday as the UK finalized an exit agreement with the EU, resolving the tricky issue of the Irish border.
However, the uptick in Sterling proved to be short lived as investors were dismayed to learn that the EU would still delay the start of trade negotiations until February at the earliest.
Looking ahead, the Pound may find itself trending lower in the first half of this week if the UK’s latest inflation and wage growth figures disappoint.
Euro News: GBP/EUR Fluctuates Whilst German Trade Balance Shrinks
An unexpected drop in Germany’s trade surplus in October aided the Pound to Euro (GBP/EUR) exchange rate’s initial gains on Friday, although this failed to prevent the pairing from slipping again towards the end of the session.
At the same time, Sterling’s gains were tempered by the UK’s latest industrial production figures as they revealed output remained flat on the month in October.
Construction output was also shown to have fallen on the month and year in October.
However, the start of this week’s session could see the Euro relinquish some ground on Tuesday as Germany’s economic sentiment index is expected to have tumbled in December.