<ul><li>Prior +3.2%</li><li>Market index 212.5 vs 210.7 prior</li><li>Purchase index 182.5 vs 182.6 prior</li><li>Refinance index 371.4 vs 350.5 prior</li><li>30-year mortgage rate 6.34% vs 6.42% prior</li></ul>

This article was written by Justin Low at www.forexlive.com.

<p style=““ class=“text-align-justify“>I think it might be safe to say that we’re in the year-end stretch now. There isn’t much to explain the drop in the pound today, with most other major currencies not doing a whole lot – the kiwi being the outlier as noted earlier <a target=“_blank“ href=“https://www.forexlive.com/news/light-changes-among-major-currencies-for-the-most-part-20221221/“ target=“_blank“ rel=“follow“>here</a>. Equities are faring better on the day but the pound is finding itself offered with GBP/USD falling by 0.7% to 1.2100.</p><p style=““ class=“text-align-justify“>The pair is now running towards another test of its 200-day moving average (blue line) at 1.2083 and that remains a key line in the sand in terms of limiting any further downside momentum.</p><p style=““ class=“text-align-justify“>For buyers, they have to keep price above that level to stay in the game. Otherwise, a firm break below that will see sellers start to flex their muscles and target a push towards 1.2000 first in the next leg.</p>

This article was written by Justin Low at www.forexlive.com.

<ul><li>Prior -19</li></ul><p style=““ class=“text-align-justify“>UK retail sales unexpectedly picked up in December but the sales balance for January is seen falling back to -17. That points to expectations that consumer spending will slide again to start 2023 as cost-of-living pressures continue to permeate across the UK economy.</p>

This article was written by Justin Low at www.forexlive.com.

<p style=““ class=“text-align-justify“>It will now be a question of whether this is really where the BOJ draws the line or if they will eventually abandon their entire yield curve control policy. Kuroda might have said that they are not thinking about it yesterday but as soon as you blindside markets in the way that he did yesterday, there’s not much trust left lingering now.</p><p style=““ class=“text-align-justify“>The wider band for the 10-year JGB yields target makes sense from a market functioning perspective but if they wanted to address that, they could’ve done so much earlier and communicated it better surely. That will at least help the central bank retain some credibility in their commitment to the 2% inflation target.</p><p style=““ class=“text-align-justify“>Instead, after the fiasco yesterday, markets are not waiting for the BOJ anymore. 10-year yen swaps are on approach to 0.80% and the pressure will continue to mount for the BOJ now to defend their new red line.</p>

This article was written by Justin Low at www.forexlive.com.

<p style=““ class=“text-align-justify“>The Kremlin adds that the continued arms supplies by Western allies to Ukraine would lead to a „deepening“ of the ongoing conflict.</p><p style=““ class=“text-align-justify“>Even though markets have learned to zone out when reading the recent headlines involving Russia and Ukraine, this still remains a risk factor to be mindful of in trading next year – in case things do escalate further.</p>

This article was written by Justin Low at www.forexlive.com.