January 2025 Currency Outlook: Why the Sell Bias Dominates EURUSD and GBPUSD

The EURUSD and GPBUSD Forex cross-pairs are dropping as expected, with the daily supply level under control. We are expecting new lows in the following hours. You can use smaller timeframes for intraday Forex strategies to take advantage of it.

As we enter January 2025, the currency markets are buzzing with uncertainty, and two pairs stand out in a sea of volatility: EUR/USD and GBP/USD. Investors are sharpening their pencils as they navigate a landscape shaped by economic shifts, geopolitical tensions, and central bank policies. Will the euro reclaim its strength against the dollar? Can the pound stage a comeback? In this Forex cross-pair supply and demand analysis, we dive deep into why a sell bias clouds these major currency pairs.

In January 2025, the EURUSD and GBPUSD Forex cross pairs are trending down in the daily timeframe, with strong daily supply levels in control and playing out, as expected. We expect new lows on the EURUSD and supply levels on these two major Forex cross pairs. Watch the video analysis below to learn about them.

Introduction to the Currency Market in January 2025

As we enter January 2025, the currency market presents a landscape filled with twists and turns. Traders cautiously eye key pairs like EURUSD and GBPUSD, but there’s an undeniable tension in the air. Many investors are leaning toward a sell bias for these major currencies after a tumultuous year in 2024, marked by significant geopolitical shifts and economic fluctuations.

The recent performance of the euro and pound has raised eyebrows and prompted questions about their future direction. With central banks navigating uncertain waters, understanding the trends is crucial for anyone looking to capitalize on this marketplace. As we delve deeper into what’s driving sentiment around these currencies, one thing becomes clear: January 2025 carries challenges and opportunities for savvy traders ready to adapt to changing tides.

Factors Contributing to the Sell Bias for EURUSD and GBPUSD

The factors listed below are unnecessary when trading if you use the supply and demand imbalances in the bigger timeframes. These events can be ignored.

Several factors are influencing the current sell bias for both EURUSD and GBPUSD. Economic data from the Eurozone has not met expectations, leading to uncertainty around growth. Inflation remains stubbornly high, prompting concerns over policy adjustments.

On the other hand, the UK continues to grapple with political instability and economic challenges. Recent government decisions have left traders wary about future monetary policies. This climate of unpredictability adds pressure on the pound.

Additionally, a stronger U.S. dollar plays a crucial role in this dynamic. The Federal Reserve’s stance on interest rates signals potential hikes ahead, making USD-denominated assets more attractive.

Geopolitical tensions also contribute to market sentiment. Investors tend to flock toward safer assets during uncertain times, diminishing demand for EUR and GBP pairs. These variables create an environment where selling appears more favourable than buying for many traders navigating these currency pairs.