GBPUSD Analysis – January-3-2024

GBPUSD Analysis - January-3-2024
Share

The British pound dipped towards $1.26 at the onset of 2024, descending from its over five-month peak of $1.2827 reached on December 28th, as investors eagerly anticipate upcoming US jobs data this week, seeking insights into potential moves by the Federal Reserve.

Furthermore, final PMI data revealed that UK factory activity continued its contraction for the 17th consecutive month in December, slipping further into negative territory.

Regarding monetary policy, investor expectations point toward the US central bank initiating interest rate cuts as soon as March, projecting over 150 basis points of cuts throughout the upcoming year. Simultaneously, traders speculate about potential interest rate reductions by the Bank of England in 2024, despite BOE Governor Andrew Bailey’s insistence on maintaining higher rates for an extended period.

GBPUSD Analysis - January-3-2024

GBPUSD Analysis – January-3-2024