GBP/USD Exchange rate
Editors’ Picks
AUD/USD risks a deeper drop in the short term
AUD/USD rapidly left behind Wednesday’s decent advance and resumed its downward trend on the back of the intense buying pressure in the greenback, while mixed results from the domestic labour market report failed to lend support to AUD.
EUR/USD leaves the door open to a decline to 1.0600
A decent comeback in the Greenback lured sellers back into the market, motivating EUR/USD to give away the earlier advance to weekly tops around 1.0690 and shift its attention to a potential revisit of the 1.0600 neighbourhood instead.
Gold is closely monitoring geopolitics
Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.
Bitcoin price shows strength as IMF attests to spread and intensity of BTC transactions ahead of halving
Bitcoin (BTC) price is borderline strong and weak with the brunt of the weakness being felt by altcoins. Regarding strength, it continues to close above the $60,000 threshold for seven weeks in a row.
Is the Biden administration trying to destroy the Dollar?
Confidence in Western financial markets has already been shaken enough by the 20% devaluation of the dollar over the last few years. But now the European Commission wants to hand Ukraine $300 billion seized from Russia.
Majors
Cryptocurrencies
Signatures
GBP/USD, THE CABLE
The GBP/USD (British Pound/U.S. Dollar) is the abbreviation for the British pound and U.S. dollar currency pair. Also called “the cable”, this cross belongs to the group of Majors. The GBP/USD tends to have a negative correlation with the USD/CHF and a positive correlation to the EUR/USD currency pairs. The Sterling is one of the four most liquid currencies in Forex and one of the reasons is the highly developed capital market. While 60% of the volume of foreign exchange are made via London, the GBP is not the most traded currency but is quite popular due to the good reputation of the UK monetary policy and a high interest rate.
The GBP/USD reached an all time high of 2.4546 in November 1980 and a record low of 1.0339 in September 2022.
GBP/USD FORECAST 2024
Setting out to analyze the GBP/USD price outlook for 2024, there are plenty of unknowns and looming uncertainties that make it difficult to convincingly predict the course of the Pound Sterling against the US Dollar (USD) in the year ahead.
On both sides of the Atlantic, increased odds of a recession, a dovish pivot in the monetary policies and general elections are foreseen as the key factors driving the GBP/USD price action next year, barring any unprecedented geopolitical risks.
Read the GBP/USD Forecast 2024 by Dhwani Mehta.
MOST INFLUENTIAL CURRENCIES FOR GBP/USD
Other currencies relate to the GBP/USD pair and can have influence on it as well: USD, EUR,CAD and YEN. This group also includes the following currency pairs: EUR/USD, USD/JPY, AUD/USD, USD/CHF, NZD/USD, USD/CAD, GBP/JPY and EUR/JPY
MOST INFLUENTIAL ORGANIZATIONS FOR GBP/USD
The Bank of England is probably the organization that impacts the most the GBP/USD. It has a wide range of responsibilities, similar to those of most central banks around the world. It acts as the government's bank and the lender of last resort. It issues currency and, most importantly, it oversees monetary policy. Andrew Bailey is the new Governor of the Bank of England since 16 March 2020. Her Majesty the Queen has approved the appointment. He is widely and deeply respected for his leadership managing the financial crisis, developing the new regulatory frameworks, and supporting financial innovation to better serve UK households and businesses.
The US Central bank, the Federal Reserve of the United States, is also closely related to the pair. Inside that institution, the Board of Governors (also known as the Federal Reserve Board) is carefully observed. The board meets several times per year and announces the interest rates. If rates remain unchanged, attention turns to the tone of the FOMC (Federal Open Market Committee) statement, and whether the tone is hawkish, or dovish over future developments of inflation.
The City of London includes a lot of organizations and institutions that might impact the cable, in particular the London Stock Exchange, the third-largest stock exchange in the world. The LSE allows companies to raise money, increase their profile and obtain a market valuation through a variety of routes, thus following the firms throughout the whole IPO process.
The European Central Bank also has influence on the cable due to the importance of business and trade between the UE and the UK. Any assessment of possible scenarios linked to a macroeconomic decision taken by the ECB has impact on the commercial partners of the Eurozone. The Euro is the second reference currency in the world (after the US Dollar) and any move by its central bank, the ECB, has consequences on the assessment of its partners.