The Pound Sterling (GBP) has been trading within Friday’s range as investors gradually return to the market after a festive week. The GBP/USD pair is expected to see increased activity following the release of the S&P Global Manufacturing PMI for December. Anticipation surrounds a steady performance in factory data, considering the holiday period when workers were on leave due to the festive mood.
A pivotal factor influencing the Pound Sterling’s movement is investor speculation regarding the potential timing of rate cuts by the Bank of England (BoE). Current market sentiment suggests expectations for the BoE to initiate interest rate cuts from May, driven by concerns about the United Kingdom economy entering a technical recession. While BoE policymakers have refrained from openly endorsing rate cuts thus far, the looming possibility of a recession may prompt discussions about reducing interest rates.
The GBP/USD pair remains in focus as investors assess economic data and closely monitor central bank signals, with the potential for increased volatility as the market responds to unfolding developments in the coming sessions.
