19 Dec 2014
EM currencies continue to stage a modest recovery – Investec
FXStreet (Barcelona) - Investec’s Jonathan Pryor, notes that the EM currencies continued to stage a modest recovery as sentiments surrounding Russia settled down to some degree, with RUB steady around 60.
Key Quotes
“The Pound fought back hard yesterday as Black Friday sales lifted UK retail sales to 10 year highs. Households have been better off as a result of falling commodity prices and ongoing supermarket price wars.”
“In news overnight, UK consumer confidence in December fell back to -4 from -2 in November, defying consensus expectations for a small increase to -1 (Investec forecast -3). We would note though that the numbers are not seasonally adjusted and declines are not unusual at this time of the year – hence we would not read too much into the drop.”
“As market liquidity begins to thin out in the lead up to Christmas, watch out for some exaggerated moves in currency markets. This week we’ve already begun to see some of this - for instance GBPPLN moved from 5.33 to 5.42 yesterday whilst the daily range for GBPEUR was 1 pip off the largest daily range seen in the pair all year (GBPEUR moved 1.73 cents higher on the day, yesterday).”
“Overall though EM currencies continue to stage a modest recovery as sentiment surrounding Russia settles down to some degree – the Ruble has steadied around 60 against the USD having peaked above 70 earlier in the week.”
Key Quotes
“The Pound fought back hard yesterday as Black Friday sales lifted UK retail sales to 10 year highs. Households have been better off as a result of falling commodity prices and ongoing supermarket price wars.”
“In news overnight, UK consumer confidence in December fell back to -4 from -2 in November, defying consensus expectations for a small increase to -1 (Investec forecast -3). We would note though that the numbers are not seasonally adjusted and declines are not unusual at this time of the year – hence we would not read too much into the drop.”
“As market liquidity begins to thin out in the lead up to Christmas, watch out for some exaggerated moves in currency markets. This week we’ve already begun to see some of this - for instance GBPPLN moved from 5.33 to 5.42 yesterday whilst the daily range for GBPEUR was 1 pip off the largest daily range seen in the pair all year (GBPEUR moved 1.73 cents higher on the day, yesterday).”
“Overall though EM currencies continue to stage a modest recovery as sentiment surrounding Russia settles down to some degree – the Ruble has steadied around 60 against the USD having peaked above 70 earlier in the week.”