Pound Sterling Price News and Forecast: Policy and protectionism to GBP in 2025?
|GBP/USD Annual Price Forecast: Policy and protectionism to Pound Sterling in 2025?
Unlike several unknowns looming at the onset of 2024, the Pound Sterling (GBP) gears up for the global implications of US President-elect Donald Trump’s protectionist policies and the path of monetary policies adopted on both sides of the Atlantic as 2025 unfolds. Meanwhile, the US Dollar (USD) holds an edge due to the US-UK macroeconomic divergence and its safe-haven status as markets stay vigilant over unprecedented geopolitical tensions that have emerged as key risks across the financial markets since 2022.
Reviewing the GBP/USD 2024 journey, the Pound Sterling failed to sustain the turnaround against the USD from a four-decade low of 1.0339 set in September 2022. The US Dollar staged a strong comeback in the final quarter, triggering a steep correction in the pair from 30-month highs of 1.3434 to settle roughly 1% lower in the year. Read more...
GBP/USD Forecast: Pound Sterling stabilizes below 1.2600
After suffering large losses on Wednesday and Thursday, GBP/USD corrected higher on Friday but ended up closing the week in the red. The pair stays in a consolidation phase below 1.2600 early Monday as trading conditions remain thin ahead of the Christmas holiday.
The Federal Reserve's (Fed) hawkish dot plot and the Bank of England relatively dovish language following the last policy meeting of the year triggered a sharp decline in GBP/USD. The positive shift seen in risk mood heading into weekend on US Congress' avoidance of a government shutdown caused the US Dollar (USD) to weaken against its rivals and helped the pair erase a portion of its weekly losses. 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.