Gbpusd To Remain Bullish

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Gbpusd To Remain Bullish

Gbp/Usd To End 2025 Near 1.30 - Ing

ING analysts have lowered their forecast for the US Dollar, which means the GBP/USD is now expected to rise higher. Earlier, ING was forecasting a 1.21 rate for the GBP/USD. But now, the ING has upgraded to around 1.30.

ING added that the US Dollar will remain vulnerable throughout the year 2025. This will be driven by weaker consumer spending and an increase in the jobless rate. At the same time, higher volatility in the GBP/USD is also expected.

Boe Remains Dovish

As for the UK's budget, ING commented that it will have a negative impact on the GBP. On top of that, a dovish BoE policy and spending cuts are also something to consider.

In the year 2025, any big USD and EURO moves are also expected to impact the GBP/USD exchange rate. If we look at Europe, Germany is thinking about a massive 500 billion Euros worth of fiscal stimulus package.

As for the USA, ING believes that the USA is on the path towards putting some major tariffs on Europe. This could be done during Q2 2025 and would affect Europe.

The outcome of this whole scenario would be negative for the Euro area. However, we must understand that the impact on Europe will be a lot worse compared to the United Kingdom.

In the short-term, the GBP/USD may move lower due to the US Dollar gains. But if we look at the bigger picture (1-year), things are in favor of the GBP.

While we are discussing the GBP/USD, its important to also look at the Trump factor. There's no telling about the next plan of the US government.

From new tariffs to a rise in trade escalation and everything in between, the US is going through a major shift. So, we must understand that the policies of Trump can have a long-lasting impact on the GBP/USD pair.

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