The US dollar rallied over a basket of major currencies ahead of the last major economic data due before the end of the year. Despite softening versus major peers after the Federal Reserve decided to hike interest rates on December 16th, the US dollar continued to gain against the Pound Sterling, reaching a multi-month low of 1.4784 before rebounding modestly to the upside. Recent gross domestic product values obtained for the third quarter indicated a slowdown in the UK economy while recent mixed data have points have served to weaken the Pound even further. As a result of decelerating growth and low inflation, the Bank of England has kept monetary policy unchanged and is unlikely to move on interest rates until inflation expectations are anchored, keeping pressure on the Pound.
US Consumer Optimism Climbs
Daily Analysis - 30/12/2015