Forex Weekly Round Up – 8 December 2014 – 12 December 2014

Here is our market summary for the week commencing 8 December 2014.

There was broadly positive news from the US, with the biggest payroll gain since 2011. Hiring increased across most industries leading the US economy to create the most jobs it had done in almost three years. The jobless rate was a six-year low of 5.8pc. However later in the week, the Dollar lost ground against the Pound after Federal Reserve disagreements over the budget surfaced.

China’s trade surplus hit a new high in November as the fall in prices of oil, iron ore and other commodities made it cheaper for China to import goods. China’s export continue to capture a growing share of worldwide markets. The General Administration of Customs announced China’s trade surplus was $54.47 billion, breaking the previous record which was $49.87 billion in August.

The UK trade balance figures showed that the trade deficit was at a seven-month low in October, as less oil was imported and exports were up. The trade deficit was £2 billion in October, down from £2.8 billion in September. The Office for National Statistics said exports rose by £200 million, including silver exports to India. Imports fell by £700 million, mainly caused by lower oil imports from non-EU countries.

Uptake of the EU’s low-rate loan program met market expectations. There were calls for the European Central Bank to do more to kick-start the region’s economy.