In a significant development for currency markets, the GBP/USD extended its weekly uptrend, trading at a two-week high near 1.2450 on Friday. Concurrently, the EUR/USD gained bullish momentum, rising toward 1.0500 during the European session. The Federal Reserve's recent decision to cut interest rates by 100 basis points has shifted market attention toward macroeconomic data releases from the United States. Meanwhile, President Trump's policies of low tax and light-touch regulation continue to support economic growth.
On Friday, the Pound Sterling strengthened further, buoyed by preliminary January PMI data from the UK that exceeded expectations. This data signals robust business activity in the private sector, providing a favorable environment for the GBP/USD pair to flourish. In tandem, upbeat PMI data from both Germany and the Eurozone indicated expansion in private sector business activity in January, contributing to the positive sentiment around the Euro.
The Federal Reserve's stance remains cautious despite the rate cut, as it seeks more evidence of economic weakness and subdued inflation prints to justify further policy adjustments. Analysts suggest that the Fed's approach may influence market trends as investors closely monitor upcoming macroeconomic indicators from the US.
In addition to currency movements, the cryptocurrency market witnessed a rally with Dogelon Mars (ELON) continuing its upward trajectory on Friday. The digital currency has seen a remarkable increase of over 18% this week, capturing investor interest.
President Trump's economic policies, characterized by low taxes and minimal regulatory interference, are perceived positively by market participants. These policies are anticipated to bolster economic growth, complementing the current favorable conditions in the financial markets.