Friday 6th December
The pound (GBP) gained ground against its weaker counterparts, unaffected by remarks from Bank of England (BoE) policymaker Swati Dhingra. Dhingra, in a Bloomberg interview, called for further interest rate cuts, but her well-known stance on easing rates did not have a negative impact on the pound.
Meanwhile, the euro (EUR) struggled against stronger currencies after Germany’s industrial production unexpectedly contracted in October. Despite this, the euro managed to make gains against some of its more vulnerable peers.
The US dollar (USD) saw an increase on Friday, despite some initial fluctuations, following the release of the latest US labour market data. While the unemployment rate rose as expected, the stronger-than-anticipated non-farm payrolls report provided a boost to the USD.
Thursday 5th December
On Thursday, the pound (GBP) strengthened against several of its counterparts, despite the absence of new UK economic data. Sterling appeared to benefit from expectations that the Bank of England (BoE) might take a more cautious approach to interest rate cuts compared to other central banks.
The euro (EUR) also rose, overcoming political concerns in France and some disappointing economic data from the Eurozone. The common currency seemed to benefit from its negative correlation with the struggling US dollar (USD), which faced pressure during the day.
The US dollar, traditionally seen as a safe haven, lost ground as improved market sentiment reduced demand for the currency. Additionally, the latest initial jobless claims data weighed on the USD, with the number of claims hitting a six-week high.
Wednesday 4th December
The pound (GBP) remained within a narrow range, bolstered by an upward revision to the UK’s services PMI, which indicated that the private sector avoided contraction last month. However, Sterling’s gains were limited after Bank of England (BoE) Governor Andrew Bailey forecasted up to four interest rate cuts in 2025 as inflationary pressures begin to ease.
The euro (EUR) faced challenges after dovish comments from European Central Bank (ECB) policymaker Olli Rehn. Rehn suggested there was “justification for a December rate cut” and hinted that additional policy easing could occur in 2024.
The US dollar (USD) encountered difficulties on Wednesday, pressured by a series of disappointing economic reports from the US. November’s ISM services PMI revealed a sharper-than-anticipated slowdown in the services sector, while ADP employment figures fell short of expectations.
Tuesday 3rd December
On Tuesday, the pound (GBP) remained largely steady, with limited movement due to ongoing concerns about the UK’s economic prospects. These concerns were further heightened by the British Retail Consortium’s (BRC) latest retail sales data, which suggested a possible slowdown in consumer spending during November.
The euro (EUR) struggled on Tuesday, weighed down by political uncertainty in France. The looming no-confidence vote against Prime Minister Michel Barnier sparked fears of potential instability in the Eurozone’s second-largest economy.
The US dollar (USD) initially faced pressure on Tuesday as a more cautious market sentiment reduced demand for the safe-haven currency. However, the dollar recovered after US job openings data for October came in stronger than expected, signaling a more resilient labour market.
Monday 2nd December
The pound (GBP) came under pressure after the UK’s final manufacturing PMI was revised downward, indicating a more significant contraction in activity. Despite this, Sterling remained relatively stable against some of its weaker counterparts.
The euro (EUR) weakened as political unrest in France, the Eurozone’s second-largest economy, impacted the common currency. French Prime Minister Michel Barnier invoked special constitutional powers to push his controversial budget through the deeply divided National Assembly, setting the stage for a no-confidence vote.
The US dollar (USD) surged at the start of the week following new tariff threats from President-Elect Donald Trump over the weekend. In a post on his social media platform, Truth Social, Trump warned he would impose 100% tariffs on BRICS nations if they attempted to undermine the US dollar by creating a competing global reserve currency.
Currency Ranges for the month:
GBP/USD: Low: High:
GBP/EUR: Low: High:
EUR/USD: Low: High: