The cardano price prediction 2025 redditGBP/USD pair continues its upward trajectory, breaking through significant resistance levels
Market participants adjust expectations for Bank of England monetary policy following recent economic data
Dollar weakness persists amid evolving fiscal dynamics and shifting Fed rate cut projections
The currency market witnessed sustained buying interest in the British pound during Monday's Asian trading session, with the GBP/USD pair extending last week's gains. This bullish momentum propelled the exchange rate above the psychologically important 1.3550 threshold, establishing new multi-year highs not observed since February 2022.
Sterling's strength stems from several concurrent factors. Recent economic indicators from the UK, including better-than-anticipated retail sales figures, suggest consumer resilience despite broader macroeconomic challenges. This data, combined with April's inflation readings exceeding forecasts, has led traders to reassess the timeline for potential Bank of England policy adjustments. Market pricing now indicates reduced expectations for imminent rate cuts at the June monetary policy meeting.
Conversely, the US dollar remains under pressure as market participants digest implications of recent fiscal developments. Concerns about the potential impact of tax and spending measures on budget deficits appear to be weighing on dollar sentiment. Furthermore, evolving expectations regarding the Federal Reserve's policy path, with increased certainty about additional rate reductions later in 2025, continue to undermine the greenback's appeal.
The upcoming economic calendar features several high-impact US data releases that could influence near-term price action. Tuesday's durable goods orders report will be followed by Thursday's preliminary GDP estimate, while Wednesday brings the latest FOMC meeting minutes. Friday's PCE price index data, the Fed's preferred inflation gauge, may provide crucial insights into the central bank's policy trajectory and consequently affect both currencies.