The Weekly Wrap – Upbeat COVID-19 Vaccine News Left the Dollar in the Red
In This Article:
The Stats
It was a particularly quiet week on the economic calendar, in the week ending 24th December.
A total of 33 stats were monitored, which was down from 87 stats in the week prior.
Of the 33 stats, 17 came in ahead forecasts, with 12 economic indicators coming up short of forecasts. There were 4 stats that were in line with forecasts in the week.
Looking at the numbers, 17 of the stats reflected an upward trend from previous figures. Of the remaining 16 stats, 14 reflected a deterioration from previous.
For the Greenback, it was back into the red, with a return of market risk appetite weighing on the Dollar. In the week ending 24th December, the Dollar Spot Index fell by 0.57% to 96.019. In the previous week, the Dollar had risen by 0.60% to 96.672.
Out of the U.S
Finalized 3rd quarter GDP and consumer confidence figures for December were upbeat mid-week. The U.S economy grew by 2.3% in the 3rd quarter, which was up from a prelim 2.1%. In spite of a shift in FED monetary policy, rising consumer prices, and Omicron, consumer confidence improved in December.
The CB Consumer Confidence Index climbed from 111.9 to 115.8.
On Thursday, jobless claims, personal spending, core durable goods orders, and inflation figures were also in focus.
In the week ending 17th December, initial jobless claims held steady at 205k. Personal spending rose by 0.6%, with core durable goods up 0.8%.
The FED’s preferred inflation measure was also aligned with the FED’s shift in stance on inflation. In November, the core PCE price index rose by 4.7%, which was up from 4.2% in October.
Out of the UK
It was a quiet week, with CBI Industrial Trend Orders and GDP numbers in focus. Industrial trend orders slipped from 26 to 24. GDP numbers were mixed, however.
Quarter-on-quarter, the economy expanded by 1.1%, which was down from a prelim 1.3%. Year-on-year, however, the economy grew by 6.8% according to finalized figures. This was up from a prelim 6.6%.
Ultimately, the stats had a muted impact on the Pound, with risk appetite supporting the Pound in the week.
In the week, the Pound rose by 1.06% to end the week at $1.3386 In the week prior, the Pound had fallen by 0.21% to $1.3245.
The FTSE100 ended the week up by 1.41% reversing a 0.30% loss from the previous week.
Out of the Eurozone
Consumer confidence figures for Germany and the Eurozone were the key stats of the week. The numbers were EUR negative, with inflation and COVID-19 containment measures weighing. Impact on the EUR was limited, however, with the markets expecting consumer confidence to wane.