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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