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Sterling Digest, 27 December 2013: the Last Friday

the FED. Free money. Take some. | Gary Varvel cartoon
The reason why GBP continues to rally in some pairs and may correct in others for 2014

It has been an incredible 2013 for GBP sterling. It is only fitting that we see these breakouts only extend further on this last Friday session of 2013. The $GBPUSD, $GBPNZD, $GBPCAD, $GBPAUD, and $GBPJPY all hit multi-year highs today. Amongst these, $GBPUSD is the only seeing a correction off the highs. Others, like the $EURGBP and $GBPCHF,  actually saw sterling decline today though both recovered losses as trading wore on. In thin holiday markets, this last Friday saw volatile price action in contrast to very rangebound markets during the early half of this week. Given the year that was 2013 in sterling, what does 2014 hold in store for GBP trading? Instead of the uniform moves that we got for much of the 2nd half of 2013, it looks like sterling will be a mixed bag in 2014.

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