GBP/USD hesitated before falling again | 08 Enero 2025

Events to pay attention to today:

15:15 EET. USD - ADP Non-Farm Employment Change

21:00 EET. USD - FOMC Meeting Minutes

GBPUSD:

GBP/USD experienced a brief period of growth on Tuesday, followed by a decline, ending the day at 1.2500. This represents a 1.3% loss for the day. Cable traders are finding it challenging to identify reasons to raise rates, as the technical recovery has stalled after a slow two-day bullish rally from nine-month lows near 1.2350.

The start of the new year has been volatile on the Pound Sterling charts, following a three-month losing streak at the end of 2024. Trading momentum has stalled near medium-term lows, as traders have limited data to familiarise themselves with. UK retail sales rose to 3.1 per cent in the year to December, but the value of the pound did not increase significantly due to a new bout of risk aversion after the US purchasing managers' index (PMI) and business spending survey results dashed hopes of further rate cuts by the Federal Reserve (Fed) in early 2025.

The US news agenda will be dominated by data releases on Wednesday, including ADP employment change data for December and the minutes of the Federal Reserve's latest meeting. ADP employment data is known to be a unreliable predictor of the Friday's Non-Farm Payrolls (NFP) data, and investors will be looking for any indication of a rate cut before June.

Trading recommendation: Trading mainly by Sell orders from the current price level.

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