Daily market analysis

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

December 21, 2023

Forex Markets Analysis 20 December 2023

CURRENCIES:

Key Points:

GBPUSD FUNDAMENTAL BACKDROP

  • 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

STOCK MARKET:

  • 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.

Start Trading US CFD Shares With VT Markets Now!

COMMODITIES:

  • 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

This site uses cookies to provide you with a great user experience.
By using www.vtmarkets.net, you accept
our cookie policy.