💡GBPUSD tends sideways to continue receiving support in downMost of Tuesday's gains in the US dollar are being retained, as expectations for an aggressive series of rate cuts in the United States are scaled back. As the year 2023 came to a close, CME Fed Fund probabilities initially indicated market expectations of 175 basis points in rate cuts, with the first move anticipated in March. However, this outlook has now been revised downward by a quarter of a point to 150 basis points of cuts. The dovish tone adopted by Fed Chair Powell in late December, during the last FOMC meeting, contributed to this shift. The release of today's minutes from that meeting may reveal that the market's interpretation of Chair Powell's remarks was possibly misguided.
Later in today's session, the first of three US jobs reports for the week will be released, featuring the November JOLTS job openings at 15:00 UK time. Over the past two years, job openings have steadily declined, and today's release is anticipated to show a further decrease, indicating a tightening of labor market conditions.
