The Bank of England’s Monetary Policy Committee took a dovish turn at their latest policy meeting, sparking discussion that the UK central bank may bring forward its first interest rate cut

Gold prices have been reigned in after the massive push to another new all-time high. However, recent price action and a stronger dollar suggest more cooling to come

The holiday-shortened week ahead has little in the way of important data or events to move Sterling assets. Sterling remains under short-term pressure.

The FOMC will deliver updates on monetary policy and reveal the latest ‘dot plot’ which will confirm whether Fed officials maintain their prior stance of three cuts in 2024

Euro traders will be looking at the Federal Reserve and the Bank of England this week to help gauge EUR/USD and EUR/GBP future price levels

This week will bring policy decisions from central banks on both sides of GBP/USD

The recent record-breaking gold rally seems likely to continue as US interest rate cuts are now seen starting at the end of H1

The Pound looks set to start a new trading week at more-than seven-month highs against a United States Dollar broadly weakened by expectations that interest-rate cuts are surely coming.

US manufacturing data revealed a slowdown in ‘new orders’ and ‘employment’ sending the dollar lower on Friday. However, NFP data remains the focus next week

Next week’s ECB meeting is unlikely to see any change in monetary policy but post-decision commentary may give traders a better view when the first rate cut is set to be announced