by Damian -
What has been an eventful year for the Pound the festive period is very quiet in terms of economic data all-round therefore movement wise may be limited.
The Pound exchange rates has been steady against the Euro and sits above 1.27. We are seeing an almost sixteen month low against the US Dollar which currently sits at 1.5570. Euro Dollar sits at a near two and a half year low currently at 1.2206 as Greece’s prime minister attempted to get his presidential candidate confirmed and avoid an early parliamentary election that could end the nation’s international lifeline. The euro rate headed for a sixth month of losses against the U.S. currency amid speculation the European Central Bank is moving closer to adding sovereign-bond purchases to its stimulus measures to revive inflation.
Sterling finished lower for sixth consecutive week against the US Dollare on the backend of a fairly quiet week. The only data for the Pound this week is the Nationwide house price index released tomorrow for December.
As for the US Dollar exchange rate, the dollar hasn’t had this good a year since the Berlin Wall fell, Taylor Swift was born and the World Wide Web was conceived. The US Dollar is set to gain against all of its 31 major counterparts in 2014 for the first time in data going back to 1989, buoyed by an improving economy and the Fed Reserves plan to raise interest rates next year.
The ruble plunged 39 percent versus the dollar this year, followed by drops of 24 percent by the Argentine peso and 19 percent by the Norwegian krone. All other currencies lost at least 1.9 percent except the Hong Kong Dollar, which is pegged to the greenback and declined 0.08 percent.
The ruble’s depreciation puts it on course for the worst year since 1998, when Russia defaulted on local debt.