FTSE 100 LIVE: Markets Lower on Last Trading Day of the Year
On the final trading day of the year, markets are experiencing a downturn as traders brace for a volatile 2025 ahead
London, UK, Pound, Dollar, Market, Interest Rates
London: Pedro Goncalves reports that the pound is holding steady against the dollar this morning, sitting around $1.2552. As we wrap up 2024, traders are feeling a bit cautious about what 2025 might bring.
Karl Schamotta, the chief market strategist at Corpay, thinks it’s going to be a tough year for the pound. He mentions that there are some domestic economic challenges and possible interest rate cuts that could weigh it down, along with changes in US policies.
He believes the Bank of England might cut rates more than what people expect soon. This could limit how much the pound can hold up against the euro. Schamotta thinks this will impact the pound’s performance, especially early in the year.
Even with these challenges, he sees some hope for recovery later in 2025. If the dollar keeps gaining strength in the first quarter, the pound might struggle. But once the markets get a clearer picture of US policies, he expects the pound to bounce back, possibly hitting over $1.30 by the end of the year.
Interestingly, the pound is on track to finish the year as the top major currency against the dollar. Meanwhile, it’s also pretty flat against the euro, sitting at €1.2056.