GBP/USD weakens to near 1.2500 on BoE dovish bets for 2025
The GBP/USD pair remains on the defensive around 1.2510 on Thursday during the Asian session, pressured by the stronger US Dollar (USD) broadly. The prospect that the Federal Reserve will slow the easing cycle this year supports the Greenback against the Pound Sterling (GBP).
The Fed lowered the Federal Funds Rate to a range of 4.25% to 4.5% in its December meeting, down from its target range of 4.5% to 4.75%. Fed Chair Jerome Powell emphasised the need for caution on further rate reductions amid stubbornly high inflation. Powell said that the US central bankers anticipated a higher inflation outlook and fewer rate cuts next year. Fed officials pencilled in only two rate cuts in 2025, down from the four it had forecast in September. Read more...
GBP/USD Price Forecast: Tests nine-day EMA above descending channel near 1.2550
GBP/USD retraces its recent losses, trading around 1.2550 during the European hours on Tuesday. The daily chart analysis suggests a weakening bearish bias as the pair is positioned above the upper boundary of the descending channel pattern.
However, the 14-day Relative Strength Index (RSI) remains below the 50 level, suggesting a persistent bearish bias. Additionally, the GBP/USD pair is positioned below its nine- and 14-day Exponential Moving Averages (EMAs), suggesting a weaker short-term price momentum. A decisive break above these EMAs could indicate a shift from bearish to bullish bias. Read more...
GBP/USD holds gains near 1.2550, driven by a decline in US Treasury yields
GBP/USD retraces its recent losses from the previous session, trading around 1.2550 during the Asian hours on Tuesday. This upside of the pair could be attributed to the subdued US Dollar (USD) amid weaker US Treasury yields.
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against its six major peers, remains subdued at around 108.00. The Greenback faced challenges as US Treasury bond yields depreciated by around 2% on Monday. 2-year and 10-year yields stood at 4.24% and 4.53%, respectively. Read more...
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD climbs higher toward 1.1100 ahead of US CPI release
EUR/USD extends its daily rally toward 1.1100 on Thursday as the Euro benefits from the EU's decision to pause countermeasure against US tariffs for 90 days. Meanwhile, the US Dollar remains under pressure ahead of CPI data, further boosting the pair.
GBP/USD rises above 1.2900, US CPI data awaited
GBP/USD preserves its bullish momentum and trades above 1.2900 on Thursday. The British Pound capitalizes on risk appetite, courtesy of Trump's tariff pause, allowing the pair to push higher as market focus shits to March inflation data from the US.
Gold clings to gains above $3,110, closes in on all-time high
Gold builds on Wednesday's impressive gains and trades above $3,110 on Thursday. The broad-based selling pressure surrounding the US Dollar and retreating US bond yields on growing fears of a deepening trade war between China and the US fuel XAU/USD's rally.
US CPI data set to reveal March inflation dip as markets weigh impact of Trump’s tariffs
As measured by the CPI, inflation in the US is set to rise at an annual pace of 2.6% in March, down slightly from the 2.8% reported in February. Core CPI inflation, which excludes the volatile food and energy categories, is expected to ease to 3% in the same period from a year earlier
Trump’s tariff pause sparks rally – What comes next?
Markets staged a dramatic reversal Wednesday, led by a 12% surge in the Nasdaq and strong gains across major indices, following President Trump’s unexpected decision to pause tariff escalation for non-retaliating trade partners.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.