FxAnalysis

The GBP/USD pair has extended its recent rally, driven by Federal Reserve rate cuts and anticipation of critical UK macroeconomic data.

After rising nearly 1% in a two-day rally following the Federal Reserve (Fed) policy announcements last week, EUR/USD entered a consolidation phase and closed virtually unchanged on Friday. The pair stays relatively calm to start the new week and fluctuates in a tight channel below 1.1750.

Gold (XAU/USD) attracts buyers for the fifth straight day and climbs to the $4,330 region during the Asian session on Monday.

Gold prices added roughly 3% in the week, flirting with the $4,350 mark on Friday, to finally settle at around $4,330. Despite its safe-haven condition, the bright metal rallied in a risk-on scenario, amid broad US Dollar (USD) weakness.

The EUR/USD pair surged to a fresh monthly high of 1.1762 in the second week of December, closing it with gains a handful of pips below the level.

The Pound Sterling (GBP) notched up a third straight week of gains, finally breaking through the 1.3400 mark. It’s been a steady climb, and one that says more about the other side of the pair than anything happening at home.