ExchangeRates.org.uk - The Pound US Dollar (GBP/USD) exchange rate inched higher on Thursday as an improving mood supported the pairing.The Pound (GBP) was muted on Thursday amid a lack of UK data, although the increasingly risk-sensitive currency found limited success against its safer rivals thanks to a positive market mood.
Despite ongoing geopolitical and economic concerns, investors were looking ahead to 2025 with some optimism.
The ceasefire in Lebanon – though strained – continued to hold, and the recent flare-up of tensions between Russia and the West had seemed to die down.
In addition, the world’s key central banks are expected to continue cutting interest rates next year, hopefully spurring global growth.
Meanwhile, the safe-haven US Dollar (USD) found itself on the back foot amid the increased appetite for risk.
Weak data from Wednesday also continued to pressure the currency.
The ISM services PMI printed well below expectations, revealing an unexpected slowdown in service sector activity.
However, a slight recovery in US Treasury yields helped to underpin the US Dollar and spare it from steep losses.
This rise in yields came after Federal Reserve Chair Jerome Powell said on Wednesday evening that the US central bank was in no rush to cut interest rates, considering strong economic growth, a robust labour market and persistent inflationary pressures.
GBP/USD Exchange Rate Forecast: US Payrolls Figures in Focus
Looking ahead, the latest US employment figures are the focus on Friday, with the latest non-farm payrolls report and unemployment rate due out.
Economists expect the non-farm payrolls figure to return to a robust 200,000 in November, after the shockingly low 12,000 in October.
Such a rebound in jobs creation could boost the ‘Greenback’.
However, the US unemployment rate is forecast to have ticked up from 4.1% to 4.2% last month, potentially limiting USD’s upside potential.
As for the Pound, Sterling could have a subdued end to the week as there is a lack of market-moving UK economic data.
This content was originally published on ExchangeRates.org.uk