Daily-FX-Market

Monday saw the USD continued its recent rally, as Forex investors were closing out their positions before the end of year holidays.

In a very light trading session, Forex traders who were buying the USD were hoping that early next year will bring about an interest rate hike in the USD, signaling the unofficial end to an underperforming two years.

The FED was clear last week when they announced that interest rates will remain low for “an extended period.” The term “extended period” means traditionally about three to four meetings of the US Central Bank’s policy-setting panel.

At 10:20 PM GMT, the US Dollar was trading up 0.4% to the Euro to 1.4278, up 0.75% versus the Japanese Yen to 91.16, up 0.73% versus the British Pound Sterling to 1.604, up .93% to the Australian Dollar to 0.8815 and up 0.36% versus the Swiss Franc to 1.0462. The Dollar did fall on Monday against the Canadian Dollar, dropping 0.4% to 1.0622.

GBP - On Monday, the Pound Sterling had a rough day, after a report came out that claimed Goldman Sachs was threatening to pull a sizeable portion of their staff out of the London offices.

It seems that the warning was a response to hard-lined British policy on taxing bonuses given to investment bankers, said to reach as high as 60%.

Over the past ten years, the finance industry has been an instrumental part of Britain’s growth, turning London into the European New York and converting it on one of the most influential and important financial locales in the world. Losing a firm such as Goldman Sachs, would tarnish the image, and perhaps lead to a further flight by other major players.

At 10:30PM GMT, the Sterling was trading down 0.41% to the Euro to 0.89, down 0.38% against the Swiss Franc to 1.6779, and down .01% versus the Japanese Yen to 146.28. The Sterling was up on day, 0.21% to the Australian Dollar to hold in at 1.8191.