Explore eFXplus Derived Data That Drive Results
A Data Partner of:
Refinitiv
Jan 24 - 11:55 AM

GBP/USD - Bulls Euphoric After Trump Rate, Trade Comments

By Paul Spirgel  —  Jan 24 - 10:08 AM

GBP/USD is poised to rally further if U.S. President Donald Trump rhetoric about lower U.S. rates and a softer approach to tariffs materialize. Sterling rose above key resistance at the 30-DMA near 1.2429 in European trading and faces further obstacles at 1.2455, the 50% Fib of the December-January dip from 1.2811 to 1.2100. A close above 1.2455 could shift momentum to bulls and put the 55-DMA at 1.2545 and daily cloud base at 1.2637 in focus. Potential hazards for GBP/USD include the Fed's rate decision on Jan. 29 and BoE's on Feb. 6. Rate markets are discounting a hold by the Fed and a 80% chance of a 25bp BoE cut. Traders will parse post-decision policymaker comments for clues about the future. Though Trump has said he will demand immediate interest rate drops and expects the Fed to listen, markets are likely to position for the Fed to remain data-dependent, focusing on U.S. inflation. However, headline risk remains acute.
GBP Chart:


(Paul Spirgel is a Reuters market analyst. The views expressed are his own)

Source:
London Stock Exchange Group | Thomson Reuters

Subscription

  • eFXplus
  • End-user license agreement (EULA)

About

  • About
  • Contact Us

Legal

  • Terms of Service
  • Privacy Policy
  • Disclaimer
© 2025 eFXdata · All Rights Reserved
!