GBP seen higher as USD declines after inflation data
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Daily Forex Market Report 13-Jan-2023: GBP seen higher as USD declines after inflation data hits the mark
As expected, US inflation eased for the sixth straight month in December, according to Thursday’s data dump.
The greenback, hoping for something hotter, didn’t like this. The US Dollar Index (DXY) ended the Thursday trading session 0.9% lower at 101.86, and it continued falling to 101.83 this morning.
GBP/USD ended 60 pips higher 1.221, though the pair fell back to 1.220 in this morning’s Asia trading window.
Sterling likely felt the pinch from underwhelming gross domestic product figures released today. While a contraction was to be expected, a year-on-year expansion of 0.2% was below market forecasts of 0.3%.
Cable falls back on GDP contraction – Source: capital.com
EUR/USD has a strong session yesterday, having moved to a nine-month high of 1.085, where it has so far remained this morning.
Traders should keep an eye out for the balance of trade figures due later. Forecasts point to a narrower deficit of -€-21.1bn.
EUR/GBP closed 0.4% higher at 88.88p, the strongest position since September 2022, though the pair has fallen 10 pips back to 88.78p this morning.
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