By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Gulf PressGulf Press
  • Home
  • Gulf News
    • Saudi Arabia
    • UAE24/7
    • Kuwait
    • Qatar
    • Bahrain
    • Oman
  • World
  • Business
    • Market DataLive
    • Finance
    • Economy
    • Energy
    • Crypto
    • ForexHot
    • Tech
  • Sports
  • Lifestyle
  • Videos
Search
Countries
  • Saudi Arabia
  • UAE
  • Kuwait
  • Qatar
  • Bahrain
  • Oman
More Topics
  • Technology
  • Health
  • Entertainment
  • Crypto
  • Forex
  • Stocks
Site Links
  • Business Hub
  • Trending
  • Weather
  • Customize Interests
  • Bookmarks
  • Newsletter
  • Terms
  • Press Release
  • Advertise
  • Contact
© 2023 Gulf Press. All Rights Reserved.
Reading: GBP/USD hits new lows as the new trading year begins
Share
Notification Show More
Recent Saved
Workers in Bucharest face challenges as temperatures rise
World
Dress code guidelines for the Qatari government sector during office hours
Qatar
Court rules in favor of worker after company dismisses him for salary deductions over 6 years, awarding BD 27,000.
Bahrain
UAE to See Almost 30,000 New Millionaires in 5 Years
UAE
Proposed New Labor Law in Bahrain Targets Increasing Job Opportunities
Bahrain
Latest News
Senkron Digital Showcases CyberPact Service at GISEC Global 2025
Gulf UAE
Muhammad Umair Saeed: The Billionaire Tech Architect Powering AI, Drones, Blockchain & Cybersecurity from Dubai to the World
Business Gulf UAE
Barcelona Aims to Recover from European Heartbreak as They Face Real Madrid in La Liga, Chasing Their Third Title of the Season
Sports
UAE with 47% and Qatar with 36% Surge in Viewing Minutes as TOD Unveils its Enhanced Streaming Experience TOD 2.0
Lifestyle
L’Oréal Paris Celebrates the Groundbreaking Launch of MELASYL at the Iconic Museum of the Future
Lifestyle
TOD Partners with Skyworth’s QVWi to Launch 4K Streaming Set-Top Box in MENA
Gulf Sports
Double victory at Red Dot: Eczacıbaşı Tiles Group’s VitrA and Villeroy & Boch brands recognised for their design excellence
Lifestyle
Your Next Destination in Dubai: Mövenpick Hotel Apartments Downtown Dubai – The Perfect Choice for Your Stay
Gulf UAE
Nexus Developer Announces the Launch of ‘Estrella’ to Set New Standards in Boutique Luxury Living in Majan, Dubai
Gulf UAE
Moscow City Tourism Committee Brings ‘Moscow Tea Time’ to Dubai with 15 Cultural Venues
Gulf UAE
Aa
Gulf PressGulf Press
Aa
  • Gulf News
  • World
  • Business
  • Entertainment
  • Lifestyle
  • Sports
  • Videos
Search
  • Home
    • Videos
    • Business Hub
    • Trending
  • Gulf
    • Saudi Arabia
    • UAE
    • Kuwait
    • Qatar
    • Bahrain
    • Oman
  • Business
    • Market Data
    • Crypto
    • Economy
    • Energy
    • Finance
    • Forex
    • Tech
  • More News
    • World
    • Lifestyle
    • Entertainment
    • Sports
Have an existing account? Sign In
Follow US
  • Terms
  • Press Release
  • Advertise
  • Contact
© 2023 Gulf Press. All Rights Reserved.
Gulf Press > Business > Forex > GBP/USD hits new lows as the new trading year begins
Forex

GBP/USD hits new lows as the new trading year begins

News Room
Last updated: 2025/01/03 at 12:01 AM
News Room
Share
4 Min Read
SHARE

The GBP/USD pair took a hit on Thursday, dropping below 1.2400 for the first time since April. Despite it being only the start of the year, the Cable is already showing signs of ending the month on a negative note. US PMI figures scheduled for Friday will wrap up the week’s economic calendar.

The decline in GBP/USD on Thursday saw the pair lose over one percent as it broke through the 1.2400 level, marking almost ten months since it has been at this level. Market volumes are currently thin due to the New Year holiday, but the prevailing sentiment remains risk-off. Economic data from the UK side is minimal for the first week of the year, with US PMI figures likely to take center stage on Friday. UK Money Supply and Mortgage Approvals data is also expected, but their impact on the market is projected to be minimal.

Analysts expect the US ISM Manufacturing PMI for December to remain steady at a contractionary level of 48.4, in line with the preliminary reading. Despite a slight monthly increase, US businesses remain cautious about activity in the first quarter of 2025 as domestic demand cools down. Cable traders will be closely monitoring the interest rate differentials in the first half of the year, as the Federal Reserve is expected to implement fewer rate cuts than initially anticipated.

The GBP/USD price forecast indicates a potential further decline towards the 1.2300 level after dropping below 1.2400. The 50-day EMA is on a bearish trajectory below 1.2700, adding downside pressure. The pair is also below the 200-day EMA, suggesting a bearish trend in the near term.

The Pound Sterling, the official currency of the United Kingdom, holds the title of the oldest currency in the world, dating back to 886 AD. It is also the fourth most traded currency globally, accounting for 12% of FX transactions totaling $630 billion daily. The key trading pairs for the Pound are GBP/USD (Cable), GBP/JPY (Dragon), and EUR/GBP.

The value of the Pound Sterling is heavily influenced by the monetary policy decisions of the Bank of England (BoE), aimed at maintaining price stability through a steady inflation rate around 2%. Interest rate adjustments are a primary tool used by the BoE to manage inflation levels. When inflation is high, raising interest rates can attract global investors to the UK, bolstering the value of GBP. Conversely, lowering rates can stimulate economic growth if inflation is too low.

Economic indicators such as GDP, PMIs, and employment data play a crucial role in determining the health of the UK economy and subsequently impacting the value of the Pound Sterling. A strong economy often leads to increased foreign investment and the potential for higher interest rates, strengthening GBP. On the other hand, weak economic data can lead to a depreciation of the Pound.

The Trade Balance is another significant factor affecting the value of the Pound Sterling. A positive trade balance, where exports exceed imports, can bolster a country’s currency by increasing demand for its goods. Conversely, a negative trade balance can weaken a currency. Overall, a combination of monetary policy decisions, economic indicators, and trade balance data all contribute to the movement of the Pound Sterling in the forex market.

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
I have read and agree to the terms & conditions
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
News Room January 3, 2025
Share this Article
Facebook Twitter Copy Link Print
Previous Article Courchevel Subzone: A Magical Winter Experience at Riyadh Boulevard World
Next Article Saudi Arabia extends condolences to families of victims in Montenegro shooting incident
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

235.3k Followers Like
69.1k Followers Follow
56.4k Followers Follow
136k Subscribers Subscribe
- Advertisement -
Ad imageAd image

Latest News

Senkron Digital Showcases CyberPact Service at GISEC Global 2025
Gulf UAE May 12, 2025
Muhammad Umair Saeed: The Billionaire Tech Architect Powering AI, Drones, Blockchain & Cybersecurity from Dubai to the World
Business Gulf UAE May 10, 2025
Barcelona Aims to Recover from European Heartbreak as They Face Real Madrid in La Liga, Chasing Their Third Title of the Season
Sports May 8, 2025
UAE with 47% and Qatar with 36% Surge in Viewing Minutes as TOD Unveils its Enhanced Streaming Experience TOD 2.0
Lifestyle May 5, 2025

You Might also Like

Forex

Pound Sterling Price Update and Prediction: GBP strengthens as risk sentiment improves

January 6, 2025
Forex

Elliott Wave Technical Analysis of NVIDIA Corp. (NVDA) [Video]

January 6, 2025
Forex

EUR/USD: Is it a Dead Cat Bounce? – OCBC

January 6, 2025
Forex

AUD/JPY maintains gains around 98.50 following PMI data release

January 6, 2025
Forex

NZD/USD edges up to nearly 0.5650 after China’s Caixin Services PMI

January 6, 2025
Forex

Japanese Yen bulls stay on the sidelines as USD/JPY remains steady above the mid-157.00s

January 6, 2025
Forex

Silver Price Prediction: XAG/USD bears in control below $30.00 near 200-day SMA

January 6, 2025
Forex

Gold price drops from multi-week high due to hawkish Fed expectations

January 6, 2025
//

Gulf Press is your one-stop website for the latest news and updates about Arabian Gulf and the world, follow us now to get the news that matters to you.

Quick Link

  • Privacy Policy
  • Terms of ue
  • Advertise
  • Contact

How Topics

  • Gulf News
  • International
  • Business
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our latest news instantly!

I have read and agree to the terms & conditions
Gulf PressGulf Press
Follow US

© 2023 Gulf Press. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

I have read and agree to the terms & conditions
Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?