The US Dollar extended its recovery on Monday, driven by risk aversion in global markets. This development weighed on the GBP/USD pair, pushing it below the 1.2450 mark during the early European session. Market participants are expecting a series of interest rate cuts both in the Eurozone and the United States this year, adding to the prevailing market jitters.
LMAX Group, a prominent entity in the financial markets, emphasizes that it has not verified the accuracy of any third-party claims or statements made in blog entries. Furthermore, it will not accept liability for any loss or damage resulting from the use of or reliance on information provided on its platform. The group ensures that any content it publishes or approves is clearly identified, maintaining transparency in its operations.
The US Federal Reserve is anticipated to cut interest rates by 25 basis points twice this year, while the European Central Bank (ECB) is expected to implement four rate cuts of the same magnitude. These anticipated cuts underline the cautious stance of central banks amidst ongoing economic uncertainties.
The US Dollar's recovery comes despite it being the worst-performing major currency last week. However, it faces potential limits due to bets on Fed rate cuts and declining US bond yields. The currency's gains are further undermined by renewed haven demand amid concerns over President Trump's tariff policies and a global tech stock sell-off.
LMAX Limited, a key player in this landscape, operates a multilateral trading facility and is authorized and regulated by the Financial Conduct Authority (firm registration number 509778). Registered in England and Wales (number 6505809), the company stands as a reputable entity in the trading domain.
FX and CFDs remain leveraged products, posing risks of losses exceeding initial deposits. As such, both novice and seasoned traders are advised to exercise caution and remain informed of market dynamics.