Fundamental Market Analysis for January 9, 2024 GBPUSDNo meaningful economic data from the UK, which is a recurring theme for the first full trading week of 2025. Cable traders will continue to be affected by flows in and out of the US Dollar in the broad market as traders prepare for a hectic end to the week. On Thursday, traders can expect a slew of speeches from Federal Reserve (Fed) policymakers as well as the Challenger jobs cut for December, which will be the final blow to preliminary Nonfarm Payrolls (NFP) data before Friday's big labor data release.
On Wednesday, ADP's Employment Change report pointed to a slower pace of hiring than expected in December, with a total of 122k jobs created compared to the expected 140k and November's 146k. In addition, ADP's payroll data showed the slowest growth since mid-2021.
On the same day, minutes from the Federal Reserve's most recent meeting showed that policymakers may be more concerned about President Donald Trump's proposed tariffs than previously thought. Over the past few weeks, Fed officials have downplayed the possible impact of immigration and trade policies on their decisions, but the latest policy meeting featured four discussions of significant changes to U.S. policy that could have a profound impact on central banks. In addition, Fed members agreed that it is time to slow the pace of rate cuts, emphasizing that policy uncertainty plays a critical role in lowering their expectations for fewer rate cuts in 2025 than the market had previously anticipated.
Trading recommendation: Trade predominantly with Sell orders from the current price level.
