GBPUSD Analysis – January-15-2024

GBPUSD Analysis - January-15-2024

The GBPUSD is performing well, staying above $1.275. This level is the highest since late December. The strength comes as investors analyze recent economic reports, affecting their views on future financial policies.

In November, the UK’s economy saw a 0.3% growth, mainly due to the services sector. This growth was slightly more than anticipated. Despite this, there’s still a risk of a recession. From September to November, the economy contracted by 0.2%, more than the 0.1% analysts predicted.

Bank of England’s Governor Comments

Andrew Bailey, the Governor of the Bank of England, spoke to the UK parliament. He mentioned that consumers and the economy manage well despite higher borrowing costs. He also observed that the current mortgage situation is much less severe than the financial crisis period.

The focus isn’t just on the UK. Traders also adjust their expectations for the US Federal Reserve’s interest rate decisions. Recent signs suggest inflation is more vital than expected, and the job market remains tight.

GBPUSD Analysis - January-15-2024

GBPUSD Analysis 4-Hour Chart