The sharp sell-off of the US Dollar (USD) last week has subsided. Renewed gains versus GBP are certainly plausible after the Autumn Statement highlighted a macroeconomic outlook considerably worse than elsewhere, economists at MUFG Bank report.
Pound Sterling depreciation expected
“Renewed US Dollar strength seems likely as the Fed continues to push a hawkish stance as they play down the idea of an end to the monetary tightening cycle. So, more challenging market conditions still lie ahead for the Pound Sterling, against the US Dollar for sure but more broadly as well.”
“The out-performance of the Pound last week is unlikely to last. The Autumn Statement contained no surprises but did highlight the relatively poor macro backdrop that will result in renewed GBP depreciation ahead.”
EUR/USD falls toward 1.0200 as US Dollar gathers strength
EUR/USD stays under bearish pressure and trades deep in negative territory below 1.0250 on Monday. In the absence of high-impact macroeconomic data releases, the US Dollar benefits from safe-haven flows to start the week and weighs on the pair.
EUR/USD News
GBP/USD flirts with lows near 1.1800 amid risk-aversion
GBP/USD stays on the back foot heading into the American session on Monday and trades at around 1.1800. The negative shift witnessed in risk mood amid renewed China Covid worries helps the US Dollar outperform its rivals and causes the pair to stretch lower.
GBPUSD News
Gold falls to $1,740 area on ongoing USD recovery
Gold price is trading at its lowest level in 10 days near $1,740 as the optimism about China moving away from its zero Covid policy fades. The broad US Dollar strength and the modest rebound witnessed in the US Treasury bond yields don’t allow XAU/USD to gain traction.
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