Created
: 2024.11.26
2024.11.26 13:37
The GBP/USD pair attracted fresh sellers on Tuesday and dropped to the 1.2500 neighborhood, closer to its lowest level since May 2024 during the Asian session. Spot prices, however, manage to rebound a few pips from the daily trough and currently trade around mid-1.2500s, down just over 0.10% for the day.
The underlying bullish sentiment across the global financial markets fails to assist the safe-haven US Dollar (USD) to capitalize on its modest intraday gains, which, in turn, offers some support to the GBP/USD pair. Any meaningful USD depreciation, however, seems elusive amid speculations that US President-elect Donald Trump's expansionary policy will reignite inflation and force the Federal Reserve (Fed) to cut interest rates slowly.
Meanwhile, the initial market reaction to Scott Bessent's nomination as the US Treasury secretary turned out to be short-lived and is evident from a fresh leg up in the US Treasury bond yields. Adding to this, persistent geopolitical risks stemming from the Russia-Ukraine war and the ongoing conflicts in the Middle East should act as a tailwind for the safe-haven Greenback. This, in turn, might keep a lid on any further gains for the GBP/USD pair.
Bearish traders, however, need to wait for a sustained break and acceptance below the 1.2500 psychological mark amid reduced bets that the Bank of England (BoE) will cut rates next month. Data released last week showed that the underlying price growth in the UK gathered speed and accelerated sharply to the 2.3% YoY rate in October. This suggests that the BoE will move cautiously on rate cuts and might offer support to the British Pound (GBP).
Investors now look forward to the release of the FOMC meeting minutes, which will be scrutinized for cues about the future rate-cut path. The attention will then shift to the first revision of the US Q3 GDP growth and the US Personal Consumption Expenditure (PCE) Price Index data later this week. The crucial data will play a key role in influencing the near-term USD price dynamics and provide some meaningful impetus to the GBP/USD pair.
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Canadian Dollar.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
---|---|---|---|---|---|---|---|---|
USD | 0.08% | 0.07% | -0.17% | 0.77% | 0.03% | 0.00% | 0.07% | |
EUR | -0.08% | -0.01% | -0.27% | 0.70% | -0.05% | -0.06% | -0.01% | |
GBP | -0.07% | 0.01% | -0.23% | 0.71% | -0.03% | -0.05% | 0.00% | |
JPY | 0.17% | 0.27% | 0.23% | 0.96% | 0.22% | 0.19% | 0.26% | |
CAD | -0.77% | -0.70% | -0.71% | -0.96% | -0.74% | -0.76% | -0.70% | |
AUD | -0.03% | 0.05% | 0.03% | -0.22% | 0.74% | -0.02% | 0.04% | |
NZD | -0.01% | 0.06% | 0.05% | -0.19% | 0.76% | 0.02% | 0.06% | |
CHF | -0.07% | 0.00% | -0.00% | -0.26% | 0.70% | -0.04% | -0.06% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Created
: 2024.11.26
Last updated
: 2024.11.26
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy