The post GBP/USD plunges to new lows to kick off the new trading year appeared on BitcoinEthereumNews.com.

GBP/USD soured on Thursday, dipping below 1.2400 for the first time since April. January just started but Cable is already on pace to end the month on a sour note. US PMI figures on Friday will round out the week’s economic calendar. GBP/USD struck a soft chord on Thursday, dumping over one percent on the outset of the new trading season and piercing through the 1.2400 handle for the first time in almost ten months. Market volumes remain thin following the midweek New Year’s holiday, but the orders coming through are on a decidedly risk-off stance. Economic data on the UK side remains strictly low-tier through the remainder of the first trading week of 2025, leaving Cable traders to grapple with a fresh update in US Purchasing Managers Index (PMI) figures slated for Friday. UK Money Supply and Mortgage Approvals are due to release early Friday as well, but the low-impact figures are unlikely to move the markets. US ISM Manufacturing PMI survey results for December are expected to hold steady, forecast to print at a contractionary 48.4, in line with the preliminary reading. Despite a slight uptick MoM, US businesses continue to have a tepid outlook on activity in the first quarter of 2025 as domestic demand cools off. The key takeaway for Cable traders will be the rate differential through the first half of 2025. The Federal Reserve (Fed) is slated to deliver far fewer rates cuts through the year than previously expected. The Fed itself only expects to deliver a total of two 25 bps rate trims through 2025, as noted in the US central bank’s Summary of Economic Projections (SEP) in December. GBP/USD price forecast GBP/USD took a fresh leg lower, falling back below 1.2400 and the pair is poised for a further plunge back into…

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Filed under: News - @ January 2, 2025 11:23 pm