- GBP/USD is attracting some bullish buying after falling to around 1.2500 during the day.
- The US dollar has struggled to capitalize on its modest gains, giving some support to the majors.
- Bets that the Fed will slow interest rate cuts and rising U.S. Treasury yields could favor dollar bulls and cap any upside.
The GBP/USD pair on Tuesday attracted new sellers and fell to around 1.2500, near its lowest level since May 2024 during Asian trading. However, spot prices were able to recover a few pips from their daily lows and are currently trading around the mid-1.2500s, down just over 0.10% on the day.
The underlying bullish sentiment across global financial markets has not helped the safe-haven US dollar (USD) take advantage of the slight intraday gains, resulting in some support for the GBP/USD pair. is provided. But amid speculation that President-elect Donald Trump's expansionary policies will reignite inflation and force the Federal Reserve to cut interest rates slowly, a meaningful weakening of the dollar seems unlikely.
Meanwhile, the market's initial reaction to Scott Bessent's nomination as Treasury secretary proved short-lived, as evidenced by a new rise in Treasury yields. In addition to this, persistent geopolitical risks stemming from the Russia-Ukraine war and the ongoing conflict in the Middle East should provide a tailwind for safe-haven greenbacks. This could limit further gains in the GBP/USD pair.
However, bearish traders will need to wait for a sustained break and acceptance below the psychological mark of 1.2500 as expectations that the Bank of England (BoE) will cut interest rates next month fade. Data released last week showed underlying price growth in the UK was accelerating, rapidly accelerating to 2.3% year-on-year in October. This suggests the Bank of England could move cautiously to cut interest rates and provide support for the British pound (GBP).
Investors are now anxiously awaiting the release of the FOMC minutes, which will be scrutinized for clues about the future path of rate cuts. Attention will then turn to the first revisions to US third-quarter GDP growth and US personal consumption expenditure (PCE) price index data, which will be released later this week. The key data will play an important role in influencing the short-term USD price trend and give some meaningful impetus to the GBP/USD pair.
USD price today
The table below shows the percentage change of the US dollar (USD) against major currencies today. The US dollar was the strongest against the Canadian dollar.
| USD | EUR | GBP | JPY | CAD | australian dollar | new zealand dollar | swiss franc | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.08% | 0.07% | -0.17% | 0.77% | 0.03% | 0.00% | 0.07% | |
| EUR | -0.08% | -0.01% | -0.27% | 0.70% | -0.05% | -0.06% | -0.01% | |
| GBP | -0.07% | 0.01% | -0.23% | 0.71% | -0.03% | -0.05% | 0.00% | |
| JPY | 0.17% | 0.27% | 0.23% | 0.96% | 0.22% | 0.19% | 0.26% | |
| CAD | -0.77% | -0.70% | -0.71% | -0.96% | -0.74% | -0.76% | -0.70% | |
| australian dollar | -0.03% | 0.05% | 0.03% | -0.22% | 0.74% | -0.02% | 0.04% | |
| new zealand dollar | -0.01% | 0.06% | 0.05% | -0.19% | 0.76% | 0.02% | 0.06% | |
| swiss franc | -0.07% | 0.00% | -0.00% | -0.26% | 0.70% | -0.04% | -0.06% |
The heat map shows the percentage change between major currencies. The base currency is selected from the left column and the quote currency is selected from the top row. For example, if you select USD from the left column and move along the horizontal line to Japanese Yen, the percentage change displayed in the box represents USD (base)/JPY (estimate).
