Sterling extended its loss on Thursday

2023-12-21
Summary:

Sterling extended losses Thursday, marking its steepest two-month drop after British inflation unexpectedly hit a two-year low in October.

EBC Forex Snapshot


21 Dec 2023


Sterling extended its loss on Thursday. It registered the steepest drop in two months in the previous session after data showed British inflation slowed more than expected to a two-year low in Oct.


US consumer confidence increased more than expected in December, which could help to underpin the economy next year. The 10-year Treasury yields hovered near a seven-month low.

GBPUSD

The dollar has been on the back foot for weeks and 150 bps of cuts by the Fed are already priced in for 2024, so investors might restrain from wagers on dollar declines.

Citibank vs. HSBC Currency Pair Data Comparison

Citi (as of 11 Dec) HSBC (as of 21 Dec)

support resistance support resistance
EUR/USD 1.0756 1.1017 1.0771 1.1057
GBP/USD 1.2326 1.2733 1.2491 1.2788
USD/CHF 0.8667 0.8957 0.8538 0.8767
AUD/USD 0.6522 0.6750 0.6575 0.6831
USD/CAD 1.3417 1.3695 1.3244 1.3554
USD/JPY 142.34 147.50 140.22 147.62

The green numbers in the table indicate an increase in data, the red numbers indicate a decrease in data, and the black numbers indicate that the data remains unchanged.


Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

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