GBPUSD Analysis Pound holds firm after BoE decision
The pound sterling has started to show relevant strength against the U.S. dollar. At the moment, GBP/USD has gained slightly more than 1.3% in the short term, reflecting an important buying bias.
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GBP/USD outlook: FOMC looms as UK inflation relief gives BoE room to wait
The focus will be on the Fed tonight and it will be interesting to see their response to the collapse in oil prices on the back of the US-Iran deal. The drop in oil has certainly added a dovish argument ahead of new Chair Kevin Warsh’s first rate decision. Should he go against market's hawkish expectations, this could weigh on the dollar.
GBP/USD forecast: Currency Pair of the Week December 15, 2025
As well as US non-farm payrolls report, we will have key central bank rate decisions to look forward to, including from the UK, putting the GBP/USD forecast into focus heading into the final weeks of 2025.
DAX, FTSE and S&P 500 forecast: Major indices bounce back as risk appetite improves
Investors are also expecting further rate cuts from major central banks, even if there was a bit of hawkish repricing of US interest rates following Powell’s comments at the FOMC presser last week. Still, easing of monetary policy is driving stocks higher, while the recent extension of a trade truce between the US and China means appetite for AI-related stocks remains strong, with earnings also largely being positive this reporting season.