GBP/USD Finds Key Support at 1.35 Despite Sluggish Year-End Trading
The GBP/USD currency pair found technical support at 1.3500 on Monday, despite declining trading volumes ahead of the year-end. Cable (as GBP/USD is known) remains trading above the 1.3500 level, although price action is sluggish due to the year-end holidays, which have reduced market volatility.
GBP/USD price movement is currently limited, as thin trading volumes prevent large movements in either direction. Despite this, the pair remains strong above 1.3500, driven by persistent positive sentiment despite sluggish market conditions ahead of the year-end.
On the other hand, there is relatively little UK economic data this week, so market movements are more influenced by low-impact market flows. The Federal Reserve's (Fed) meeting minutes, due to be released on Tuesday, are expected to provide a final glimpse into the policy stance taken by US policymakers heading into 2025.
Investors will be closely watching the minutes for clues regarding the likelihood of further interest rate cuts. The latest dot plot shows that Federal Open Market Committee (FOMC) members expect two interest rate cuts over the next two years. This reinforces market speculation that two more interest rate cuts will be announced by September 2026.
With little economic data coming out of the UK and the market's focus on Fed policy, GBP/USD will remain influenced by further developments regarding global monetary policy. Although trading this year is expected to be slow, future movements will depend heavily on the decisions and policy signals taken by the world's major central banks. (asd)
Source: Newsmaker.id
