Key Headline:

• GBP's recent positive momentum is fading as sentiment shifts.
• Market attention turns to US jobs data, but USD's dominance is expected to persist.

Recap

GBP's earlier losses eased by the end of the day, as markets appeared to rationalize that the recent bond market turmoil was less severe than during the Autumn Budget of 2022. While the Bank of England refrained from intervening this time, it is enhancing its tools to address bond market disruptions by permitting eligible non-bank financial institutions to borrow cash against gilts. Although immediate concerns have subsided, it seems that last year’s positive sentiment toward GBP is steadily unwinding.

Today’s Rates

Today's Interbank Rates at 09:40 am against GBP movement.

GBP>EUR – 1.1941

GBP>USD – 1.2303

EUR>GBP – 0.8371

EUR>USD – 1.0302

GBP>CAD – 1.7735

GBP>AUD – 1.9886

GBP>SEK – 13.707

GBP>AED – 4.5190

GBP>HKD – 9.5800

GBP>ZAR – 23.349

GBP>CHF – 1.1234

GBP>PLN – 5.0944
 

Today’s Key Takeaways

• Focus on US Job Numbers: December's employment data is in the spotlight, with expectations of 165,000 new jobs and an unemployment rate of 4.2%.
• Fed’s Hawkish Outlook: Recent Fed commentary suggests potential for stronger-than-expected job figures, which could further boost USD strength.
• USD Outlook: Even if the data disappoints and USD weakens temporarily, it could provide an opportunity for renewed USD buying ahead of Trump’s inauguration.
• GBP Remains Under Pressure: GBP is starting the day flat but faces a likely retreat from recent highs against multiple currencies as market sentiment remains cautious.

10th January 2025

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