The pound headed lower against the dollar on Thursday, despite fresh data from the Office for National Statistics showing the UK economy grew 0.1% in November. Sterling was 0.3% lower against the dollar in morning trade, heading to the $1.22 mark, its lowest level since November 2023.
Sterling had gained on Wednesday due to an inflation print that came in cooler than expected.
CCY – Delayed Quote • USD
1.2207 – (0.00%)
As of 10:27:41 GMT. Market open.
GBPUSD=X GBPEUR=X
Currency traders are performing a balancing act between the two major currencies, as US inflation data this week remained firm and markets look to the inauguration of Donald Trump on 20 January.
The pound has been under pressure in recent weeks as traders weigh the track record so far of chancellor Rachel Reeves. Signs of a shaky start to deliver on the government’s growth promises have sparked turmoil in bond markets, with borrowing costs rising, and triggered a selloff in the pound.
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“It’s hard to get excited about 0.1% growth, especially when the bigger picture is of an economy still stuck in the muck,” said Danni Hewson, AJ Bell head of financial analysis. “Whilst November managed to deliver a tiny bit of growth as pubs and restaurants were filled with revellers determined to get into the Christmas spirit, if you zoom out to take in three months as a whole things have flatlined once again.”
The pound also fell 0.3% against the euro, below the 1.19 mark.
CCY – Delayed Quote • USD
1.1857 – (-0.27%)
As of 10:27:54 GMT. Market open.
Gold prices ticked higher on Thursday, as traders brace for president-elect Donald Trump’s inauguration.
The spot price rose 0.3% to $2,705 per ounce, while futures rose 0.6% to $2,733 per ounce.
In the short-term, the promise of tariffs and a potential trade war out of the US have driven price rises in the yellow asset.
“When considering a long-term outlook, Trump’s policies may result in further jumps in gold prices,” said Rick Kanda, managing director of The Gold Bullion Company.
Read more: FTSE 100 LIVE: Stocks rise as UK economy returns to growth in November
“Typically, Trump’s approach to the presidency is much more unpredictable and brings higher geopolitical risk, which can drive investors to gold. As he enters the White House later this month, two international conflicts remain ongoing in Ukraine and the Middle East, and how he reacts to these could prove pivotal to markets around the world, including gold.”
“It’s predicted that by the end of 2025, gold will rise to $3,000 per troy ounce and thanks to its increased rises throughout this year, I fully expect that this will be the case. Global central banks are expected to maintain their gold buying momentum, which will be key to gold hitting that $3,000 value mark,” added Kanda.
Story continues
COMEX – Delayed Quote • USD
2,737.90 – (+0.74%)
As of 5:18:13 GMT-5. Market open.
Oil prices had slipped by mid-morning on Thursday, as hope for a ceasefire deal between Gaza and Israel remains high. A ceasefire and hostage deal between the pair is expected to come into force on Sunday with an initial six-week truce, however fighting has continued, with at least 20 Palestinians killed since the talks began, according to a BBC report.
Brent crude futures headed 0.3% lower to $81.79 a barrel. West Texas Intermediate prices also slipped 0.3% to $79.80.
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Oil watchers have also been looking to data related to crude oil stocks for guidance. Reuters reported this morning that US crude oil stocks fell last week to their lowest since April 2022 as exports rose and imports fell.
The US has imposed sanctions on Russian oil producers and tankers which have meant Moscow’s top traders have looked elsewhere for replacement barrels. Shipping rates have also gone up.
NY Mercantile – Delayed Quote • USD
81.80 – (-0.28%)
As of 5:18:11 GMT-5. Market open.
BZ=F CL=F
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