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Pound Sterling Price News and Forecast: GBP weakens at the start of new year amid firm BoE rate cut prospects

FXStreet Team FXStreet

Pound Sterling weakens at the start of new year amid firm BoE rate cut prospects

The Pound Sterling (GBP) weakens against its major peers on Thursday amid growing expectations that the Bank of England (BoE) will follow a less gradual rate-cut approach this year.

The BoE reduced its key borrowing rates by 50 basis points (bps) to 4.75% in 2024. BoE’s policy-easing pace was slow compared to its European and North American peers as inflation in the United Kingdom (UK) service sector remained highly stubborn due to sticky wage growth. Read more...

GBP/USD Forecast: Pound Sterling sellers could hesitate if 1.2500 support holds

GBP/USD closed in the red on Monday and Tuesday, pressured by the broad-based US Dollar (USD) strength. Following the New Year break, the pair trades marginally higher on the day above 1.2500.

Safe-haven flows dominated the action in financial markets toward the end of the year and helped the USD outperform its rivals. In the European morning on Thursday, US stock index futures rise between 0.5% and 0.7%, pointing to an improving risk mood. Read more...

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Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

GBP/USD climbs to four-day highs near 1.3250

GBP/USD rapidly reverses Friday’s small losses and challenges the 1.3250 level, or four-day tops, at the beginning of the week. Cable’s upside comes on the back of further loss of momentum in the Greenback, while traders continue to assess the geopolitical front and upcoming key events.

EUR/USD extends the advance past 1.1400

EUR/USD starts the week on a positive note, trading above 1.1400 on Monday as broad-based US Dollar weakness lends support to the pair. In the meantime, investors continue to monitor developments surrounding efforts to end the US-Iran conflict, while attention gradually shifts to the ECB's annual forum and the US NFP data.

Gold falters just ahead of $4,100

Gold remains under modest bearish pressure just above the key $4,000 mark per troy ounce on Monday. The yellow metal struggles to extend its recent gains as renewed effervescence in the Middle East revives inflation concerns and bolsters Fed rate hike expectations.

Bitcoin four-year cycle: BTC risks 75% drawdown with four months of bear market still ahead

Bitcoin price continues to trend downward below the $60,000 support zone after losing over 50% of its value since the $126,199 high in October. Bitcoin’s four-year cycle, measured from cycle tops to bottoms, suggests that four months of a bear market are still ahead.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.

Pound Sterling Price News and Forecast: GBP weakens at the start of new year amid firm BoE rate cut prospects

Pound Sterling weakens at the start of new year amid firm BoE rate cut prospects

GBP/USD Forecast: Pound Sterling sellers could hesitate if 1.2500 support holds

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GBP/USD climbs to four-day highs near 1.3250

EUR/USD extends the advance past 1.1400

Gold falters just ahead of $4,100

Bitcoin four-year cycle: BTC risks 75% drawdown with four months of bear market still ahead

Just like Fed, is BoJ’s independence under threat?

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

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Pound Sterling weakens at the start of new year amid firm BoE rate cut prospects

GBP/USD Forecast: Pound Sterling sellers could hesitate if 1.2500 support holds

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