Daily Forex Market Report 21-Nov-2022: USD starts on a positive foot, Sterling unable to break $1.20 barrier

US anticipates Black Friday sales data

USD started the week on a positive foot on the back of a retreat in dovish Fed expectations.

Sterling was quoted at $1.1827 early Monday in London, down a full US cent from $1.1929 late Friday, the euro traded at $1.0278, down from $1.0362, while against the yen, the dollar was quoted at Y140.70, 139.85.

The pound is seen facing resistance near the $1.1960 level while the 1.2030 area remains the broader resistance, this is likely to be a huge barrier for any further gains. Support remains all the way back at the $1.1640/50 area.

Ipek Ozkardeskaya, senior analyst at Swissquote Bank suggested: “We could see some profit taking in the single currency and a downside correction toward the 1.0190 level, which is the minor 23.60% retracement on the 2021-2022 sell-off.”

This week, investors will focus on interest rate hikes and US Black Friday sales.

The Reserve Bank of New Zealand is expected to raise its rates by another 75bp on Wednesday, the Fed will reveal the minutes from its latest meeting a little bit later that day, and the US will find out how much and of what people will be buying this Black Friday.

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