2 min to read
The British Pound faced a decline attributed to the sluggish growth
in the UK Consumer Price Index
“In the context of broader market adjustments, the British Pound faced a decline attributed to the sluggish growth in the UK Consumer Price Index (CPI) = London Forex Overview”
The London market is presently undergoing a comprehensive adjustment, marked by a minor correction in the Dollar following its decline in the previous session. This correction is primarily influenced by the depreciation of the British Pound. The UK Consumer Price Index for November, disclosed in the early morning, revealed a year-on-year growth of +3.9%, hitting its lowest point in approximately two years. Consequently, the Pound-to-Dollar swiftly descended from around 1.2720 to below 1.2650. While the Dollar exhibited softness against the Yen, fluctuating within the mid-143 yen to early 143 yen range amid a decline in US bond yields, its weakness against the Euro was somewhat contained. However, it continued its decline in synchronization with the Pound-to-Dollar, falling below 1.0950. Notably, the Dollar Index exhibited a modest rebound from the preceding day’s downturn, remaining within the realm of adjustments. Cross-yen pairs, collectively, displayed a subdued tone, with Euro-to-Yen briefly dipping below 157 yen after fluctuating around the mid-157 yen range. Pound-to-Yen experienced a notable decline from the mid-182 yen to the early 181 yen. In after-hours trading, US stock futures registered a slight decrease, while European stocks maintained strength, fueled by speculations regarding an earlier-than-expected initiation of the UK rate hike. German and French stocks, however, reversed their early gains. The yield on the US 10-year bond dipped below the psychological threshold of 3.90%, settling in the 3.88% range.
The USD/JPY pair is presently trading in the mid-143 yen range, encountering selling pressure amid diminishing US bond yields. The US 10-year bond yield retreated from the mid-3.92% range in the Tokyo morning to the mid-3.88% range in the London session. After reaching a peak around 144.10 in the Tokyo morning, the USD/JPY pair extended its decline to the 143.20 range.
Euro-to-Dollar is situated in the mid-1.09 range. Despite reaching a high around 1.0985 in the Tokyo morning, it faced resistance on the upside. Demonstrating some volatility, it extended its decline to approximately 1.0943. Euro-to-Yen is currently undergoing a nearly one-way descent, descending below the 157 yen level after peaking around 158.12 in the Tokyo morning. In contrast to the UK CPI, there is a strengthening of Euro buying against the Pound. The German Ifo business survey, in contrast to the UK CPI, indicated anticipations of future product price increases.
The Pound-to-Dollar pair is trading in the mid-1.26 range, encountering resistance after reaching a high around 1.2735 in the Tokyo morning. Following the announcement of the UK CPI falling below expectations, selling pressure intensified, resulting in a swift decline to around 1.2648. The subsequent rebound brought it to around 1.2680. Pound-to-Yen, after facing selling pressure from the Tokyo morning high around 183.34, experienced a sharp drop to around 181.29. It is currently grappling with resistance in the mid to high 181 yen range. Euro-to-Pound exhibited a slight decline to around 0.8620, but post the UK CPI announcement, it surged to around 0.8669, followed by a slight pullback to around 0.8650.
Visit XM Official Website.
