Daily Forex Market Report 28-Nov-2022: GBP remains strong against USD, despite slight weekend dip

Cable pushed slightly higher this morning after losing 30 pips during the Sunday session, while UK 10-year gilt yields fell in unison by a quarter of a percent to 3.11%.

Though Sterling is lower against last week’s highs, the GBP/USD pair is still sitting strong at 1.207, supported by a weaker greenback as the market considers a slower pace of rate hikes from the US Federal Reserve following November’s softer-than-expected CPI print.

GBP/USD going strong, despite small Weekend dip – Source: dailyfx.com

The US Dollar Index (DXY) pared back 0.2% in this morning’s Asia trading session, continuing a bearish trend following the release of the Federal Open Market Committee’s minutes last Wednesday.

A majority of Fed officials judged that a slowing in the pace of the fed funds rate increase would soon be the right course of action, prompting cautious sentiment towards the greenback.

EUR/USD is changing hands at 1.037, an incremental gain against the day. The pair remains buoyant due to a persistently hawkish attitude from the European Central Bank.

The euro has been trapped in a two-week losing streak against the pound, with further losses this morning bringing the EUR/GBP pair down to 85.93p.

A quiet economic calendar is scheduled for this Monday, apart from ECB President Christine Lagarde’s speech before the Committee on Economic and Monetary Affairs (ECON) of the European Parliament in Brussels.

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