Forex Weekly Round Up 30 November 2015 – 4 December 2015
UK consumer credit continued to grow in October at rates not seen since 2006, while mortgage approvals edged higher after a dip in the previous month, Bank of England data showed. Lending to consumers rose by £1.2billion last month, up 8.2% compared with October last year, prompting some concerns about people’s reliance on personal loans, overdrafts and credit cards in order to make ends meet.
US manufacturing unexpectedly contracted in November at the fastest pace since the last recession as elevated inventories led to cutbacks in orders and production. The Institute for Supply Management’s index dropped to 48.6, the lowest level since June 2009, from 50.1 in October.
The annual rate of inflation in the Eurozone rose just 0.1% in November; this was below the forecast reading of 0.2% and was unchanged from the previous month. The Euro immediately fell to a low for the day after the reading was published, and was down 0.4% against the dollar, near a eight-month low.
New measures announced by European Central Bank President Mario Draghi to support the region’s economy fell short of analysts’ expectations. GBP/EUR dropped more than 3 cents, the euro’s biggest surge since March, as the market expressed its disappointment with the ECB’s latest easing measures. The ECB cut its deposit rate by the minimum 0.1% most traders had expected, to -0.3%, and extended its asset purchase programme, but did not increase the amount of government bonds it buys each month.
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Here are the exchange rates taken at 16:30 today. Please note that all conversions are based on interbank rates without any spreads and should be used only as a guide. For live ‘spot’ and ‘forward’ prices please feel free to drop us a line.
GBP/USD 1.5106
GBP/EUR 1.3878
USD/EUR 0.9187
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