The US Dollar will look to close out 2024 up over 6.5% to put in its best performance since 2015. Monetary policy divergence between the Fed and other major central banks has been a clear theme this year and will continue to be as we get set to get going in 2025.

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GBP/USD rebounds to test 1.2400 in the European session on Friday. A minor pullback in the US Dollar allows the pair to find some respite after having lost over 1% on the outset of the New Year on Thursday. All eyes remain on the US ISM PMI data and Fedspeak for further impetus. 

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Gold price receives support from safe-haven flows as Joe Biden discussed contingency plans to strike Iran’s nuclear facilities. The dollar-denominated Gold could struggle as the US Dollar Index trades around its multi-year high of 109.56, reached on Thursday.

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