US equity markets jumped into Xmas week, perhaps indicating a strong end to the year and a ‘Santa Claus rally’. UK GDP growth numbers were extremely weak, but in line with expectations, calming economic concerns. The US Dollar eased, with the EUR jumping back to 1.1750, while the GBP zoomed up to 1.3450.
The PBoC left rates unchanged, as expected, improving risk appetite. Japanese bond yields remain elevated, while the Yen managed to consolidate (albeit at very low levels) and following the threat of intervention, from the Ministry of Finance. Commodity currencies enjoyed the weaker reserve, as the NZD looked to regain 0.5800, while the AUD pushed back to 0.6650.
