The post GBP/USD holds positive ground near 1.2450 on US Dollar bullish appeared on BitcoinEthereumNews.com.

GBP/USD rebounds to around 1.2440 in Monday’s early European session.  Fed officials highlighted a need to balance inflation control with maintaining a strong labor market. The dovish BOE bets might cap the upside for the pair in the near term.  The GBP/USD pair extends the recovery to near 1.2440 during the early European session on Monday. However, the potential upside seems limited amid the Federal Reserve’s (Fed) hawkish stance. Later on Monday, investors await the Fed’s Governor Lisa Cook speech for more cues about the US interest rate outlook this year.  The US central bank has cut the interest rates by one percentage point since September 2024 and signaled slower rate cuts this year, which supports the US Dollar (USD) broadly. Over the weekend, the Fed officials reinforced the view that the Fed will take a more cautious approach to cutting interest rates this year. Fed policymakers warned the fight against inflation is still with them while also highlighting their need to protect job market stability. Traders will closely monitor the US December labor market data on Friday. Economists expect 150,000 new jobs for December, while the unemployment rate is expected to remain at 4.2% during the same report period. The Average Hourly Earnings are projected to rise by 0.3% MoM in December. In case of a weaker-than-expected outcome, this could weigh on the USD against the Cable.  On the other hand, the rising Bank of England (BoE) dovish bets could undermine the Pound Sterling (GBP). The markets are now pricing in nearly 60 basis points (bps) interest rate cut by the BoE this year, up from 53 bps seen in the last week of December. Matthew Ryan, head of market strategy at Ebury, said the BOE policymakers appear more divided on the path ahead for UK interest rates and that reflects…

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Filed under: News - @ January 6, 2025 7:19 am