As the first trading week of 2025 wrapped up, the GBP/USD saw a modest recovery on Friday, climbing about 0.4% and holding steady above the 1.2400 mark. Despite the UK releasing some disappointing macroeconomic and consumer credit data earlier that day, these low-priority figures barely made a dent in the market’s path. Across the Atlantic, US business activity surveys painted an optimistic picture, buoying investors and sustaining a healthy appetite for risk.
On Friday, the British Pound found itself precariously hovering near an over eight-month low, trading around 1.2400 against the US Dollar during North America’s session. This pressure on the GBP/USD pair can be attributed to the ongoing strength of the US Dollar, driven by market speculation that the Federal Reserve might ease up on rate cuts this year. Investors continue to eye developments closely, looking for cues to guide their strategies.
Thursday marked a rough start to the new trading year for the GBP/USD, as it surrendered over 1% and dipped below the 1.2400 level—a threshold not touched in almost ten months. Despite the subdued market activity following the midweek New Year’s break, the prevailing sentiment leans towards caution, with incoming orders reflecting a clear move away from risk.
