GBP: UK data may boost Sterling amid short squeeze – ING

FXStreet Insights Team FXStreet

November jobs and December CPI data could provide a modest boost to sterling, potentially extending a short squeeze that has been building since late November. While GBP/USD may lead the move due to dollar weakness, EUR/GBP remains at risk, with major risk-off events potentially curbing sterling’s upside, ING's FX analyst Chris Turner notes.

GBP/USD set to outperform on Dollar weakness

"We think this week's UK data set – November jobs data and December CPI – could prove slightly bullish for sterling and extend a short squeeze which has been extending since late November. We had felt that the weak link here would be EUR/GBP, with risks to 0.8600. However, dollar weakness at the start of the week could mean that GBP/USD sees the majority of this move. Above 1.3415/3420 could open up the 1.3450/3460 area."

"We are cognizant that sterling tends to underperform in major risk-off episodes; clearly, there are many moving parts at play here."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD rises above 1.1600 as EU-US tensions escalate

EUR/USD gathers bullish momentum and climbs toward 1.1650 on Monday. The US Dollar faces some selling after US President Donald Trump threatened escalating tariffs on eight European nations that have opposed his plan to take Greenland. US stock and bond markets will remain closed in observance of Martin Luther King Jr. Day.

GBP/USD climbs above 1.3400 on broad USD weakness

GBP/USD gains traction following a bearish opening to the week and trades slightly above 1.3400 on Monday. The US Dollar weakens against the Pound Sterling as markets react to US President Donald Trump's latest tariff threats against Europe over ‌Greenland.

Gold hits record-high on Trump's tariff threats, geopolitical risks

Gold caught aggressive bids at the start of a new week and notched a new record-high of $4,690 before correcting lower. US President Donald Trump's threat to impose tariffs on eight European countries that opposed his plan to acquire Greenland causes markets to adopt a cautious stance, boosting XAU/USD.

Dogecoin, Shiba Inu, Pepe in a freefall, echoing Bitcoin’s drop

Meme coins, such as Dogecoin, Shiba Inu, and Pepe, extend the decline from last week, with a roughly 3% drop on Monday. The meme coins trade below the crucial moving averages, aiming for the immediate support to potentially reset the momentum.

When tariffs become ammunition and capital becomes the battlefield

Markets opened the week like a risk engine hitting a pothole at speed. Equities stepped back, gold vaulted to fresh highs, Treasuries caught a bid, and the dollar, outside of havens, took on a soft bid. This was not a data-driven wobble or a valuation purge.