It's the last update this year and what a year it has been, I hope you agree on a positive note!
Even if this 3-day week has been light when it comes to the economic calendar, we have seen market movements in particular involving the USD. Through December we have had market momentum on USD weakness against both the GBP and EUR. So how come the greenback is facing setbacks when the US economy is performing better than both the UK and Europe? It comes down to market speculations on monetary actions for 2024. Current market expectations is that the US will cut rates by 150 basis points, while the Federal Reserve have mention to pivot interest rates by 75 basis points.
This drove markets yesterday to a five month high for EUR/USD – 1.1140. While GBP/USD was not far behind recording a four month high of 1.2828. An overview for December, we can see that the momentum has been there through out the whole month for EUR/USD open at 1.0889 on 1st of December.
On behalf of Currencies 4 You, we want to wish you and your family a Happy New Year’s and prosperous 2024 ahead!
