- The sterling pound remains stable, while investors change their approach to the BOE interest rates decision on Thursday.
- Investors expect the BOE to reduce interest rates at 25 basic points up to 4%.
- Operators have now completely incorporated a Fed interest rate cut in September.
The sterling pound (GBP) is negotiated in general flat against its main peers on Tuesday, since investors change their approach to the announcement of the monetary policy of the Bank of England (BOE) on Thursday.
Investors expect the BOE to cut interest rates at 25 basic points (PBS) up to 4%. This would be the fifth cut of interest rates of the Central Bank of the United Kingdom (UK) in its current monetary expansion cycle, which began in August 2024.
Market participants will pay special attention to the monetary policy statement and the press conference of the Governor of the BOE, Andrew Bailey, to obtain clues about the probable monetary policy action of the Central Bank in the rest of the year. In the June monetary policy announcement, the BOE guided a “gradual and cautious” monetary expansion.
A deceleration in labor demand and an increase in inflationary pressures have led to an increase in fears of stagflation in the United Kingdom economy.
Recently, labor market indicators have indicated that companies are reluctant to increase their templates due to an increase in employers’ contributions to social security schemes. Meanwhile, the June Consumer Price Index (CPI) showed that both general and underlying inflation increased faster than expected.
LIBRA ESTERLINA PRICE TODAY
The lower table shows the percentage of pounding sterling (GBP) compared to the main currencies today. Libra sterling was the strongest currency against the New Zealand dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.32% | 0.06% | 0.32% | 0.22% | 0.31% | 0.47% | 0.47% | |
| EUR | -0.32% | -0.26% | 0.03% | -0.09% | -0.10% | 0.09% | 0.15% | |
| GBP | -0.06% | 0.26% | 0.25% | 0.17% | 0.16% | 0.35% | 0.29% | |
| JPY | -0.32% | -0.03% | -0.25% | -0.11% | 0.06% | 0.13% | 0.13% | |
| CAD | -0.22% | 0.09% | -0.17% | 0.11% | 0.03% | 0.18% | 0.12% | |
| Aud | -0.31% | 0.10% | -0.16% | -0.06% | -0.03% | 0.22% | 0.12% | |
| NZD | -0.47% | -0.09% | -0.35% | -0.13% | -0.18% | -0.22% | 0.01% | |
| CHF | -0.47% | -0.15% | -0.29% | -0.13% | -0.12% | -0.12% | -0.01% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the sterling pound from the left column and move along the horizontal line to the US dollar, the percentage change shown in the box will represent the GBP (base)/USD (quotation).
What moves the market today: the pound sterling hesitates against the US dollar, the US PMI is observed. UU.
- The sterling pound oscillates in a narrow range around 1,3280 against the US dollar (USD) during the European negotiation session on Tuesday. The GBP/USD torque is consolidated, while the US dollar remains in general stable before the revised data of the United States Global S&P PMI (USA) and the Purchasing Management Index (PMI) of ISM Services for July, which will be published during the North American negotiation hours.
- The US dollar index (DXY), which tracks the value of the dollar against six main currencies, stabilizes around 98.80 after a strong fall on Friday.
- Economists hope that the ISM services PMI will be in 51.5, above the reading of 50.8 observed in June, suggesting that the activity of the services sector grew at a faster rate. Investors will closely follow the data, since the services sector represents about two thirds of the US economy.
- Meanwhile, the perspective of the US dollar has become uncertain, since the operators have increased bets that support trim of interest rates by the Federal Reserve (Fed) at the September policy meeting. According to the CME Fedwatch tool, the probability that the FED cuts interest rates at the September meeting has increased to 92.2% from 41.2% observed on Thursday, one day before the publication of the Non -Agricultural Payrols (NFP) data (NFP) of July.
- On Friday, the NFP report showed signs of a strong deceleration at contracting levels and an increase in unemployment rate.
Technical analysis: The sterling pound is stable stable around 1,3300
The sterling pound is negotiated quietly below 1,3300 against the US dollar on Tuesday. The perspective of the torque remains bassist, since the rupture of the graphic pattern of shoulder-hombro (H&S) is maintained and the 20-day mobile average (EMA) is inclined down close to 1,3395. The H&S pattern line is drawn around 1,3360.
The 14 -day relative force index (RSI) ranges below 40.00, indicating that the bassist momentum remains intact.
Looking down, the minimum of May 12, 1,3140 will act as a key support zone. On the positive side, the maximum of July 30 about 1,3385 will act as a key barrier.
Economic indicator
Decision on the BOE interest rate
He Bank of England Announce your decision on the interest rate at the end of your eight meetings scheduled per year. If the BOE adopts a hard line posture on the inflationary perspectives of the economy and elevates interest rates, it is generally bullish for sterling pound (GBP). Similarly, if the BOE adopts a moderate vision of the United Kingdom economy and keeps interest rates without changes, or reduces them, it is considered bassist for the GBP.
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Next publication:
PLAY 07, 2025 11:00
Frequency:
Irregular
Dear:
4%
Previous:
4.25%
Fountain:
Bank of England
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
