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December in the Markets.

Bank of England Reports Published in December 2019

PPA Regulatory Digest – Read the report

The PRA Regulatory Digest is for people working in the UK financial services industry and highlights key regulatory news and publications delivered for the month.

Monthly Decision Maker Panel Data – Read the report

The Decision Maker Panel (DMP) is a survey of Chief Financial Officers from small, medium and large UK businesses. We use it to monitor developments in the economy and to track businesses’ views.

Monetary Policy Committee Meeting Summary – Read the report

Our MPC voted by a majority of 7-2 to maintain Bank Rate at 0.75%. The committee also voted unanimously to maintain the stock of corporate bond purchases and UK government bond purchases.

Global Markets End 2019 with Healthy Gains

From: The BBC

Stock markets overcame US-China trade tensions and Brexit uncertainty to post healthy gains in 2019. In London, the FTSE 100’s traditional early New Year’s Eve close saw it end the year up 12% at 7,542.44 points.

Some big European and Asian markets saw even larger rises in 2019, while the main US indexes were all on track to end sharply higher on the year. It was a welcome return to form after 2018, in which many global markets suffered their worst year in a decade.

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Dollar Broadly Weaker on 2019 Final Trading Day

From: Daily Forex

Thanks to a weaker US Dollar, both the pound Sterling and the Euro edged higher in light trade in London. Analysts say that FX traders are backing away from the greenback as a safe haven currency. The last trading day of the year also seemed to be whetting appetite for higher risk currencies, including the Australian Dollar.

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Global Growth Optimism Helps Euro

From: Daily Forex

Optimism that the United States and China will ensure upward movement in global growth as a result of improved trade relations between the two countries has helped to push the Euro to a 4½ month peak versus the greenback.

Recent measures taken up by the People’s Bank of China has also helped to whet investor appetite for higher risk currencies.

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Euro Gains and Sterling Shines as Growth Optimism Cheers Investors

From: Reuters

The euro, the pound and a clutch of trade-sensitive currencies rallied as the dollar slid to a six-month low on Tuesday, with investors confident that global growth prospects are improving and U.S.-China trade relations significantly better.

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Dollar Snaps Six-day Losing Streak, Yuan Shrugs off PBOC Cash Injection

From: Reuters

The dollar snapped a six-day losing streak to add 0.2% on Thursday, the first trading day of 2020, pushing the euro off five-month highs while the offshore yuan shrugged off reserve ratio cuts that could add $115 billion worth of liquidity.

The euro strengthened 1.8% to the dollar last month but the PMIs failed to lift it further even though bond yields extended their rise and inflation expectations rose to the highest since July.

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FX Rates in December

GBP/EUR

Dec High: 1.2081
Dec Low: 1.1639
Dec End: 1.1828

GBP/USD

Dec High: 1.3515
Dec Low: 1.2894
Dec End: 1.3260

EUR/USD

Dec High: 1.1239
Dec Low: 1.1002
Dec End: 1.1222