– Written by


Tim Boyer

STORY LINK Pound Sterling to Dollar Forecast: GBP Consolidation

The Pound to Dollar exchange rate (GBP/USD) consolidated above 1.33 after touching five-week highs, with traders now squarely focused on Wednesday’s Fed decision.

Markets expect a cut to 3.75%, though officials are likely to temper hopes for rapid follow-up easing.

GBPUSD’s path will hinge on Powell’s guidance and whether hawkish messaging offers the dollar a short-term lift.

GBP/USD Forecasts: Consolidation Below 5-Week Highs

After hitting 5-week highs around 1.3380, the Pound to Dollar (GBP/USD) exchange rate has consolidated above 1.3300.

The Pound has been subdued and the FTSE 100 index has drifted lower while markets are positioning for this week’s US interest rate decision.

There are no major UK data releases until Friday, but testimony by Bank of England officials to the Treasury Select Committee will be potentially important on Tuesday.

UoB still expects GBP/USD gains to 1.3410 and added; “only a breach of 1.3265 would indicate that GBP has moved into a range-trading phase.”

The Federal Reserve will announce its latest policy decision this Wednesday with the Bank of England decision the following week.

There are strong expectations that the Fed will decide to cut rates again to 3.75% with traders pricing in close to a 90% chance of a move.

Scotiabank looked at the underlying issues; “The Fed is widely expected to cut rates this week… and give markets a little more insight into how a deeply divided policy-making body expects the key rate changes to unfold in the year ahead via updated dots and economic forecasts.”

Comments from Chair Powell will be important and markets will also watch the updated interest rate forecasts from individual committee members.

According to BNY Mellon’s head of markets macro strategy Bob Savage; “We expect to see some dissents, potentially from both hawkish and dovish members.”

RBC expects the doves will win out; “With some softer data during the blackout, we doubt the hawks will put up a major fight.”

MUFG commented; “To push through a rate cut, Fed leadership may need to pair it with more hawkish guidance. We expect the updated communication to signal that the pace of rate cuts will likely slow next year, while emphasizing that the path remains highly data-dependent.”

It added; “More hawkish guidance could provide support for the US dollar and further delay expectations for another cut early next year.”

According to ING; “The Fed could be a positive event risk for the dollar in that it seems hard for the Fed to validate the 90bp of easing priced into Fed Funds futures by early 2027. However, the potential formal nomination of Kevin Hassett as Fed Chair over the coming months and the seasonal factors keeping the dollar weak into year-end should limit the dollar’s upside.”

Danske Bank commented on the press conference; “We expect Powell to verbally push back against continuation of sequential rate cuts in early 2026. Updated dots will likely signal a range of views for 2026 rates outlook, but we expect median long-range dot to remain at 3.00-3.25%.”

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TAGS: Pound Dollar Forecasts

Copper price ended yesterday’s trading by providing new closure near $5.3200 level, taking advantage of stochastic positivity by providing chances for resuming the bullish attack that depends on several factors, one of them is the stability within the bullish channel levels besides forming extra support at $5.1300.

Therefore, we keep the bullish scenario, waiting for reaching %161.8 Fibonacci extension level at $5.5000, and surpassing it will open the way for achieving extra gains in the upcoming period.

The expected trading range for today is between $5.2500 and $5.5000

Trend forecast: Bullish

Created on December 09, 2025

• The British Pound continues to climb against the Japanese Yen as persistent yen weakness and wide rate differentials drive the trend.
• Pullbacks remain shallow and carry incentives to support buyers as long as global risk conditions stay stable.

The British Pound has rallied a bit during the trading session on Monday, breaking above the 207 Yen level, and in fact is looking like it’s trying to get to the 208 Yen level. This is a pair that is focusing, I believe, mainly on the Yen because, quite frankly, the Bank of England is likely to cut rates this month.

But at the same time, the Bank of Japan is so stuck in its loose monetary policy that even if it did raise rates, it wouldn’t be enough to make the difference up. Global liquidity requires cheap funding out of Japan, and I think that will continue to be the mainstay of the asset bubbles that everybody enjoys.

Pullbacks and Trend Considerations

Short-term pullbacks are buying opportunities, and I do believe that the 50-day EMA at the very least is your floor, and that is right around the 203.62 Yen level and rising. As long as we don’t get some type of major meltdown on a global stage, I expect the Japanese Yen to continue to weaken, but I don’t know that we won’t get the occasional pullback. You’ll just have to make sure that you have enough space for your stop loss to take advantage of these dips and, more importantly, hang on to the trend.

You get paid at the end of every day to hold this pair, and that’s something that I like. It helps soften the pullbacks, and of course, you also have to keep in mind that even if the Bank of England cuts rates, you can still drive a truck through the interest rate differential when it comes to these two currencies.

Ready to trade our daily forecast and analysis? Here’s a list of some of the top forex brokers UK to check out.

Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

GBP/USD Technical Analysis

The British pound looks like it is rolling over a little bit. And that’s not a huge surprise because we had that explosive move a couple of days back due to the budget. The question is, will that budget change the trajectory of the economy? The answer, of course, is no. And recently, the Bank of England came within a whisker of cutting the rate. So, I think the market is starting to focus on that again.

At this point, we’ll be watching 1.32 to see if we can break down below it. If we can, then that’s a very negative sign. If we bounce from there, then we could head back into the previous consolidation. And just like in the case of the euro, I think it’s the Federal Reserve that determines the next move.

EUR/GBP Technical Analysis

The euro rallied slightly during the trading session on Monday, but it’s hanging around the 50-day EMA. And I think this is an area that is going to continue to be somewhat noisy. All things being equal, I think we’re just killing time here. But if we were to break down below the 0.87 level, then I think the market really starts to drop. If we rally from here and clear the 0.875 level, then I think we go looking at the 0.8850 level again. That being said, this is a very choppy market. It always is choppy. So, I’m not looking for rapid or quick moves.

For a look at all of today’s economic events, check out our economic calendar.

– Written by


Ben Hughes

STORY LINK GBP to USD Forecast: Pound Sterling Drifts on Leadership Uncertainty, Fed Watch

The Pound to US Dollar exchange rate (GBP/USD) drifted on Monday, slipping back from last week’s six-week high as renewed political unrest in Westminster weighed on Sterling and traders shifted their focus to the Federal Reserve’s upcoming policy decision.

At the time of writing, GBP/USD was trading at $1.3316, largely unchanged on the session.

The Pound (GBP) struggled for traction on Monday as fresh political anxiety limited Sterling’s upside.

Reports surfaced that Labour Together — a prominent Labour thinktank — has been polling members on potential leadership alternatives. The survey reportedly includes Prime Minister Keir Starmer and eight senior Labour figures, fuelling speculation that a leadership challenge could emerge in May 2026 should Labour underperform in the local elections.

Political stability remains a critical currency driver, and renewed whispers of leadership turbulence added an unwelcome layer of uncertainty. With questions creeping back into the UK’s political outlook, traders were reluctant to push the Pound meaningfully higher.

The US Dollar (USD) held steady on Monday as investors adopted a cautious stance ahead of Wednesday’s Federal Reserve interest rate decision.

While markets still widely expect a rate cut, subtle pre-decision positioning helped to keep the Dollar supported. A modest rise in US Treasury yields also offered the ‘Greenback’ some protection, as traders pared back the most aggressive easing bets and reassessed how quickly the Fed might loosen policy.

This slight recalibration was enough to prevent further Dollar losses, leaving USD largely rangebound as markets await clearer direction from the central bank.

GBP/USD Exchange Rate Outlook: Pre-Fed Jobs Data to Shape USD Direction

Looking ahead, UK focus will fall on Bank of England (BoE) Governor Andrew Bailey’s speech on Tuesday. With the final interest rate decision of 2025 looming, investors will scrutinise his comments for any shift toward a more dovish tone. Signals that a rate cut is likely next week — or that further easing could follow — may weigh heavily on Sterling.

For the US Dollar, incoming labour market data could be decisive ahead of the Fed meeting.

The ADP weekly employment change reading may pressure USD if it indicates another decline in staffing levels. Meanwhile, the long-delayed JOLTS job openings reports for September and October are finally due. Continued cooling in labour demand would reinforce evidence of slack in the jobs market, potentially dragging the Dollar lower as traders reconsider the Fed’s appetite for deeper rate cuts.

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TAGS: Pound Dollar Forecasts

Created on December 08, 2025

• EUR/JPY traded choppily on Friday, with buyers supporting each dip as sentiment toward the yen remains weak.
• Rising JGB yields and BOJ policy uncertainty shape direction, while key levels at 180, 182, and 185 yen define near-term momentum and support.

The euro has been choppy against the Japanese yen during the trading session on Friday, as we continue to see a little bit of support in this market anytime it drops. But you also need to keep in mind that the Japanese yen itself is facing a lot of noise due to the idea that the Bank of Japan will have to keep its interest rate fairly low, but the bond market at the same time is seeing yields rise in Japan; this is literally going to move JGB expectations. So, we’ll have to wait and see how that plays out from a longer-term standpoint. But as things stand right now, the Japanese yen is not a currency that a lot of people want to own. And that, of course, translates into a higher pair here.

Key Psychological Levels and Upside Targets

Ultimately, short-term pullbacks I think offer buying opportunities, and it’s probably worth noting that the 180 yen level is a large round psychologically significant figure that I think continues to offer short-term support. To the upside, the 182 yen level is probably a target.

And at that point in time, I think you have to look at this as a market that if we can break above there, then we will almost certainly go looking to the 185 yen level. If we were to break down, the 50-day EMA is closer to the 178 yen level and rising. So, I think that is an area buyers might look to pick up a little bit of value as well.

Begin trading our daily forecasts and analysis. Here is a list of Forex brokers in Japan to work with.

Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

Created on December 08, 2025

• USD/JPY initially slipped but firmed after U.S. core PCE met expectations, with technical action hinting at another bullish rebound.
• Support levels remain intact, and the pair may consolidate while awaiting the upcoming FOMC decision and press conference.

The US dollar fell a bit against the Japanese yen in early trading on a Friday, but we have now reacted to the core PC numbers that came out as anticipated in the United States. And that, of course, makes the US dollar firm up a little bit because I think some people were expecting bad news.

At this point, we have to pay close attention to Japanese yields in the bond markets and the JGB market due to the fact that rising interest rates could signal a problem. It can be the death of the carry trade, but I don’t think that gets out of control. At this point, we’re in the process of forming another hammer as we had on Thursday. So I think a bounce here does make a certain amount of sense from a technical analysis standpoint, and it could send this market back to the 158 level.

50 Day EMA

The 50-day EMA sits in the 153.50 region, and the 153 yen level underneath is a significant support level, all things being equal. This is a market that I think will continue to find buying opportunities based on value, and the Wednesday session of next week also features the interest rate decision; people will be watching that very closely. But I think more importantly, what they will pay attention to is the press conference and statement.

If the Federal Reserve looks like it’s going to be very hesitant to cut rapidly, then that should send the US dollar higher. So, the next couple of days might be about hanging around in this area, just simply killing time waiting for that information. But right now, we’re still in an uptrend. That hasn’t changed. It looks like we are trying to push to the upside. So, I like it.

Want to trade our USD/JPY forex analysis and predictions? Here’s a list of forex brokers in Japan to check out.

Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

Created on December 08, 2025

EUR/USD Analysis Summary Today

• Overall Trend: : Bullish.
• Support Levels for EUR/USD Today: 1.1610 – 1.1560 – 1.1480
• Resistance Levels for EUR/USD Today: : 1.1680 – 1.1760 – 1.1820

EUR/USD Trading Signals:

• Buy EUR/USD from the support level of 1.1570 with a target of 1.1800 and a stop-loss at 1.1500.
• Sell EUR/USD from the resistance level of 1.1730 with a target of 1.1500 and a stop-loss at 1.1800.

Technical Analysis of EUR/USD Today:

We expect the EUR/USD pair to move within a narrow range at the start of this important trading week, within its recent price range. According to reputable trading platforms, the EUR/USD closed around 1.1640 last week after gains that extended to the 1.1681 resistance level, the pair’s highest point since mid-October.

Last week, the EUR/USD’s gains were fueled by investor optimism following positive European economic data. Germany saw improvements, with factory orders rising 1.5% in October, according to the German Federal Statistical Office (Destatis), five times the market forecast of 0.3%. The September reading was also revised upwards from 1.1% to 2.0%. French industrial production also contributed to this improvement, exceeding expectations with a 0.2% increase compared to the anticipated 0.1% decline. Spanish production rose by 0.7%, exceeding expectations of 0.5%.

Further Confirming the strength of the underlying economic conditions, the Eurozone also released its GDP data, which showed the economy grew by 0.3% quarter-on-quarter in the third quarter, surpassing expectations of 0.2%.

Employment also grew at a comfortable rate of 0.2%, exceeding expectations of 0.1%. Overall, all of this points to a strong economic pulse that will encourage the European Central Bank to hold interest rates steady for an extended period. In a world where interest rates are so crucial, this presents the euro with a good opportunity to make further gains against the dollar, which is expected to be subject to a series of US interest rate cuts by the Federal Reserve this week.

Daily Chart Technical Indicators Support the Bulls

According to the daily Forex chart, technical indicators continue to support the upward trend of the EUR/USD pair. The 14-day Relative Strength Index (RSI) is around 61 and has more time to achieve stronger gains before reaching overbought territory. This could happen if the bulls manage to push back towards the psychological resistance level of 1.1800. Meanwhile, the MACD indicator continues its steady upward trend.

The scenario for a bearish in the EUR/USD on the daily chart depends on the bears pushing prices back toward the psychological support of 1.1500 once again. The Euro/Dollar is not anticipating major data releases today apart from the announcement of the German Industrial Production reading at 09:00 AM Egypt time, followed by the Sentix Consumer Confidence reading for the Eurozone at 11:30 AM Egypt time.

Accordingly, limited trading for the Euro/Dollar can be expected today, pending the market’s reaction to the most important event: the US Federal Reserve’s policy announcement next Wednesday.

Trading Tips:

Please note that trading currencies within narrow ranges is not a sound investment decision. It is best to wait for the currencies’ reaction to this week’s key releases to determine the most suitable trading opportunities, avoiding unnecessary risk regardless of how strong the trading opportunities may seem.

Ready to trade our EUR/USD daily forecast? Here’s a list of some of the top forex brokers in Europe to check out.