GBP/USD Exchange rate
Editors’ Picks
EUR/USD hovers around 1.0800 on Fed's decision
EUR/USD returned to the 1.0800 price zone after the Federal Reserve announced its decision to cut the benchmark interest rate by 25 bps as widely anticipated. Chair Jerome Powell's remarks put mild pressure on the US Dollar.
USD/JPY retreats from weekly highs as FOMC delivers 25 bps rate trim
USD/JPY hovers around 153.80 after the Fed broadly met market expectations on November's rate call. The Fed delivered a follow-up quarter-point cut on Thursday; markets now bet on the odds of a December three-peat.
Gold regains $2,700 with Fed’s announcement
Gold extends its recovery following Wednesday's sharp decline and trades above $2,700, as the US Dollar eases following the Federal Reserve's decision to cut rates by 25 bps. Powell's speech revolved around Trump's victory.
Ethereum Price Forecast: ETH eyes $3,366 as open interest growth could fuel quest for new all-time high
Ethereum (ETH) is up nearly 8% on Thursday and could reach a new all-time high before year-end following increasing investor demand for the top altcoin. This is visible in ETH's open interest growth and increasing Ethereum exchange-traded funds (ETF) inflows.
Outlook for the markets under Trump 2.0
On November 5, the United States held presidential elections. Republican and former president Donald Trump won the elections surprisingly clearly. The Electoral College, which in fact elects the president, will meet on December 17, while the inauguration is scheduled for January 20, 2025.
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Signatures
GBP/USD, THE CABLE
The GBP/USD (British Pound/U.S. Dollar) is the abbreviation for the British pound and U.S. dollar currency pair. Also called “the cable”, this cross belongs to the group of Majors. The GBP/USD tends to have a negative correlation with the USD/CHF and a positive correlation to the EUR/USD currency pairs. The Sterling is one of the four most liquid currencies in Forex and one of the reasons is the highly developed capital market. While 60% of the volume of foreign exchange are made via London, the GBP is not the most traded currency but is quite popular due to the good reputation of the UK monetary policy and a high interest rate.
The GBP/USD reached an all time high of 2.4546 in November 1980 and a record low of 1.0339 in September 2022.
GBP/USD FORECAST 2024
Setting out to analyze the GBP/USD price outlook for 2024, there are plenty of unknowns and looming uncertainties that make it difficult to convincingly predict the course of the Pound Sterling against the US Dollar (USD) in the year ahead.
On both sides of the Atlantic, increased odds of a recession, a dovish pivot in the monetary policies and general elections are foreseen as the key factors driving the GBP/USD price action next year, barring any unprecedented geopolitical risks.
Read the GBP/USD Forecast 2024 by Dhwani Mehta.
MOST INFLUENTIAL CURRENCIES FOR GBP/USD
Other currencies relate to the GBP/USD pair and can have influence on it as well: USD, EUR,CAD and YEN. This group also includes the following currency pairs: EUR/USD, USD/JPY, AUD/USD, USD/CHF, NZD/USD, USD/CAD, GBP/JPY and EUR/JPY
MOST INFLUENTIAL ORGANIZATIONS FOR GBP/USD
The Bank of England is probably the organization that impacts the most the GBP/USD. It has a wide range of responsibilities, similar to those of most central banks around the world. It acts as the government's bank and the lender of last resort. It issues currency and, most importantly, it oversees monetary policy. Andrew Bailey is the new Governor of the Bank of England since 16 March 2020. Her Majesty the Queen has approved the appointment. He is widely and deeply respected for his leadership managing the financial crisis, developing the new regulatory frameworks, and supporting financial innovation to better serve UK households and businesses.
The US Central bank, the Federal Reserve of the United States, is also closely related to the pair. Inside that institution, the Board of Governors (also known as the Federal Reserve Board) is carefully observed. The board meets several times per year and announces the interest rates. If rates remain unchanged, attention turns to the tone of the FOMC (Federal Open Market Committee) statement, and whether the tone is hawkish, or dovish over future developments of inflation.
The City of London includes a lot of organizations and institutions that might impact the cable, in particular the London Stock Exchange, the third-largest stock exchange in the world. The LSE allows companies to raise money, increase their profile and obtain a market valuation through a variety of routes, thus following the firms throughout the whole IPO process.
The European Central Bank also has influence on the cable due to the importance of business and trade between the UE and the UK. Any assessment of possible scenarios linked to a macroeconomic decision taken by the ECB has impact on the commercial partners of the Eurozone. The Euro is the second reference currency in the world (after the US Dollar) and any move by its central bank, the ECB, has consequences on the assessment of its partners.