Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News

Gold prices ease after hitting record high

News

Week Ahead Preview: 17th of February

News

Europe stocks hit record high on strong earnings

News

BRIC currencies mostly gain as US inflation rises

News

Refresh your portfolio with Coca-Cola?

News

GBP/USD price may rally to multi-week high

Trends & Analysis
News

Gold prices ease after hitting record high

News

Week Ahead Preview: 17th of February

News

Europe stocks hit record high on strong earnings

News

BRIC currencies mostly gain as US inflation rises

News

Refresh your portfolio with Coca-Cola?

News

GBP/USD price may rally to multi-week high

Asset Watch

Key factors influencing GBP/USD in the current year

 

Tuesday, 14th of January 2025

GBP/USD price news, and analysis

  • Monetary Policy Outlook for the British Pound against the US Dollar
  • Key levels to watch on the GBP/USD daily price Chart

The Pound Sterling Performance
Markets are closely monitoring the release of December’s Consumer Price Index data for the UK. The YoY Core inflation is anticipated to decline from 3.5% in November to 3.4% in December, while The YoY headline is expected to rise from 2.6% to 2.7%. This inflation dynamic complicates the Bank of England’s ability to cut interest rates more than once in Q1, potentially limiting them to a single rate cut at the February meeting.

However, rising British bond yields could push the government to curtail spending to balance the budget under the Labour Party’s administration. Reduced government spending and cooling inflation, particularly from the services sector, may prompt the Bank of England to accelerate rate cuts, potentially leading to four 25-basis-point reductions by the end of 2025.

The US Dollar Performance
The dollar has gained from promised policies underpinned by Trump’s administration, including tax cuts, measures against illegal immigration, and tariffs, which have spurred inflationary pressures. These factors have cast doubt on the likelihood of the Federal Reserve implementing more than one rate cut this year. Investors are also awaiting December’s US CPI data, which is expected to show the YoY headline rising from 2.7% to 2.9%, while core inflation remains steady at 3.3%.

 

GBP/USD Price Daily Chart

Chart Source: ADSS Platform

At the start of this year, the GBP/USD pair resumed its downtrend, hitting its lowest levels in over two years yesterday. However, prices rebounded due to profit-taking by traders. Currently, the pair is approaching the high end of the current trading zone located between 1.2383 and 1.2000. A daily close above this level with a break above the descending trendline from the December 6 high could signal a potential rally toward 1.2866, with a possible rebound near 1.2616.

On the flip side, a daily close below the low end of the mentioned trading zone would indicate stronger bearish momentum, potentially driving prices further down to 1.1873.


Site by Pink Green
© ADSS 2025


Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC – S.P.C (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates under First Category: Dealing in Securities and Fifth category: Arrangement and advice (Introduction). ADSS is a Limited Liability Company – Sole Proprietorship Company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.