The GBP/USD pair is trading around 1.2940 during Asian hours on Monday, extending its losing streak for the third consecutive session. Despite its current downward trend, the daily chart suggests a continued bullish bias with the pair moving upwards within an ascending channel pattern. Meanwhile, the USD remains near a multi-month low, influencing various commodities and currency pairs in the market.
The persistent low position of the USD is further underpinning commodities like gold, with the XAU/USD receiving additional support. The anticipation surrounding the Federal Reserve's monetary policy is playing a significant role. Market participants are betting that the Fed will cut rates several times in 2025, a factor that is supporting the XAU/USD. This expectation of future rate cuts is also contributing to the upward movement of the commodity, providing it with a solid foundation despite other market fluctuations.
As the USD hovers near its multi-month low, it continues to influence the pricing dynamics of various assets. The GBP/USD pair's movements are also reflective of this broader economic context. The anticipated actions by the Fed are likely to have ripple effects across markets, particularly impacting how commodities and currency pairs perform in the coming months.