GBPUSD Insight

42
Hello, subscribers!
Great to see you all. Please feel free to share your personal opinions in the comments. Don’t forget to like and subscribe!

Key Points
- Kazuo Ueda, Governor of the Bank of Japan, stated on the 25th that "if economic conditions improve, it may be necessary to raise policy rates and adjust the level of monetary easing." However, markets assessed that he did not provide a clear signal for a rate hike.
- The 7-year U.S. Treasury auction saw strong demand, with a yield set at 4.53%, lower than the market expectation of 4.55%.
- The U.S. Department of Labor reported weekly initial jobless claims at 219,000, below market expectations. However, continuing jobless claims—those filing for unemployment benefits for two or more weeks—rose to 1.91 million, exceeding forecasts. The market interpreted this as a slight decline in the number of unemployed individuals in the U.S., but noted challenges for existing claimants in finding jobs and a decline in hiring demand by companies.

Key Economic Indicators
+ December 27: Tokyo December Core Consumer Price Index

GBP/USD Chart Analysis
With European markets closed for Christmas and Boxing Day, the forex market displayed volatility, focusing on the movement of the U.S. dollar. GBP/USD continues to hold the 1.25000 level, which serves as a short-term reference point.

- Break below 1.25000: Likely downward trend toward 1.23000.
- Break above 1.25000: Possible upward trend toward 1.27000.

We will evaluate the long-term trend once GBP/USD reaches the anticipated highs or lows.






Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.