Daily Forex Market Report 30-Nov-2022: GBP opens higher against USD, shows weakness against euro

GBP/USD opened this morning at 1.194 after retreating from yesterday’s intraday high of 1.206. The pair has since gained just over 10 pips, thus is currently changing hands at 1.195.

Sterling similarly fell against the euro, with the EUR/GBP pair opening at .864 after gaining on Monday’s intraday low of .860.

Tepid UK mortgage data may have contributed to the slump- approval numbers of 60,000 came in 3,000 fewer than expected, while total lending of £4bn was 30% lower than forecast.

With higher mortgage rates expected to kick in in the coming months, demand is expected to take even more of a hit.

Can Cable close the session higher after four straight days of losses? – Source: tradingview.com

This morning’s British Retail Consortium shop price inflation data spelled bleak news for consumers- prices shot up 7.4% in November, above the three-month average of 6.5%, making for a record rate since the index started in 2005.

Meanwhile in the euro area, today’s yearly inflation data is expected to come in at 10.3%. A 0.3% cut back from October’s reading yes, but still far above reasonable levels whichever way you cut it.

Yet with consumer price expectations improving for the first time since February, perhaps there could be some surprises in store.

Euro sentiment seems to have improved this morning. In addition to gains against the pound, after five straight days of losses, the EUR/USD pair has jumped 0.25% to 1.035 in this morning’s Asia session.

With a busy day on the US calendar, the US Dollar Index (DXY) is currently sitting at 106.24, having dipped 0.17 in today’s trading session so far.

Quarterly GDP growth is expected to come in at 2.6%, while a slew of mortgage, retail spending and home sales should give a clearer picture of the US’s economic direction.

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