GBPUSD

As we approach the end of the first month of the new year, the flow of critical data in global markets continues. Following the U.S. Federal Reserve (Fed), today the European Central Bank (ECB) will announce its interest rate decision, and President Lagarde's speech will be closely monitored. Additionally, the U.S. fourth-quarter growth data is a significant agenda item. Tomorrow, the Fed's inflation indicator, the PCE (Personal Consumption Expenditures), will be released. Due to the impact of the Dollar Index, volatility is expected in the EURUSD and GBPUSD pairs. The ECB is projected to implement a total of four interest rate cuts amounting to 100 basis points throughout the year, with a 25 basis point cut anticipated in this meeting.

Attention is focused on ECB President Lagarde's strategies regarding monetary policy and how she will guide the implementations from the Trump era. The classic Dollar Index shows a medium-term positive outlook above the 233-day average (104.80), while remaining below the short-term 34-day average (107.73) keeps a reactionary mindset on the agenda. A similar decision-making process is ongoing in the GBPUSD pair, with the 1.2360 and 1.2480 levels being critical for the market.