Daily market analysis

Forex Market Analysis: GBPUSD Slide & Market Updates 20 December 2023

December 21, 2023

Forex Markets Analysis 20 December 2023


Key Points:


  • The British pound fell sharply this morning after the UK CPI report showed a significant decline in inflationary pressures on both headline and core metrics respectively
  • The impact of restrictive monetary policy measures is now showing as consumers are reluctant to spend thus decreasing demand for goods and services.
  • Retail sales figures confirm this and should this trend continue, pound upside may be limited


  • Key events today:
  • UK inflation
  • US Conference Board consumer confidence, existing home sales
    • European equity futures and Treasuries rise despite warnings on US interest-rate cuts.
    • Benchmarks in Asia advance following Wall Street rally, while China’s gauges edge lower.
    • Treasury 10-year yields slip three basis points to 3.91%.
    • Contracts for US stocks trade flat.
    • Market expectations for Fed easing remain high despite Atlanta Fed President Raphael Bostic stating no urgency to lower rates.
    • Bank of America Corp. survey shows investors most optimistic since the beginning of 2022.
    • Traders liquidate bets on higher short-term US yields.
    • Japan’s benchmark government bond yield falls to lowest since July after Bank of Japan holds policy.
    • Nikkei 225 stock gauge rises to highest in more than five months.
    • Yen gains for the first time in four days.
    • BOJ’s decision to stay on hold likely to support Japanese stocks.
    • Chinese banks hold benchmark lending rates following central bank’s decision to skip cutting policy interest rates.
    • Richmond Federal Reserve President Thomas Barkin reinforces dovish tone, suggesting US central bank would lower rates if progress on inflation continues.
    • Other policymakers push back against rate cut bets.
    • Investors await US data readouts, including existing home sales, third-quarter GDP print, durable goods orders, and personal consumption expenditures.
    • Alibaba Group Holding Ltd. CEO Eddie Wu to take over the company’s core e-commerce business.

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  • West Texas Intermediate crude rose 0.2% to $74.08 a barrel
  • Spot gold was little changed

Styliana Charalambous
Market Analyst

My name is Styliana Charalambous, possessing a professional qualification as a Chartered Certified Accountant and a Bachelor’s Degree in Accounting and Finance. Highly motivated financial analyst with expertise in audit and investment strategies. I have several years of experience in the finance industry, as an audit supervisor at KPMG and the Head of Investment & Market Research in a multinational Fintech company.

Passionate about personal finance, investing, and creating finance content on social media. Lecturer in Accounting & Finance at Canterbury Christ Church University. I am the Founder and CEO of Selfmade Academy, an organization that helps thousands of students worldwide to plan for their financial future and make smart decisions about their money

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