The post GBP/USD rises to near 1.2400 as Trump asks Fed for rate cuts appeared on BitcoinEthereumNews.com.

GBP/USD appreciated as US President Donald Trump asked the Fed to cut interest rates immediately. Traders expect the Fed to keep its benchmark overnight rate steady in the 4.25%-4.50% range in January. The BoE is anticipated to deliver a 25 basis point rate cut in February. GBP/USD extends its gains for the second successive day, trading around 1.2400 during the Asian hours on Friday. The pair’s upside could be attributed to the remarks from US President Donald Trump on late Thursday. President Trump said he wants the US Federal Reserve (Fed) to cut interest rates immediately. “With oil prices going down, I’ll demand that interest rates drop immediately, and likewise they should be dropping all over the world,” said Trump at the World Economic Forum in Davos, Switzerland. Traders expect the Federal Reserve (Fed) to keep its benchmark overnight rate steady in the 4.25%-4.50% range at its January meeting. Moreover, Trump’s policies could drive inflationary pressures, potentially limiting the Fed to just one more rate cut. However, the upside of the GBP/USD pair could be limited as the Pound Sterling (GBP) could face headwinds following recent data including softer-than-expected UK inflation and retail sales data for December, weakening labor demand over the three months to November, and tepid GDP growth. These factors have led traders to anticipate a 25 basis point (bps) rate cut by the Bank of England (BoE) in February. Markets are now pricing in a near-certain reduction in the BoE’s policy rate to 4.5% at its upcoming meeting. Traders are expected to closely watch the release of preliminary S&P Global Purchasing Managers Index (PMI) for both the United Kingdom and the United States for January. Additionally, the US Michigan Consumer Sentiment Index will be in focus. These indicators are likely to offer important insights into short-term economic…

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Filed under: News - @ January 24, 2025 3:12 am