- The sterling pound is driven by the optimism of the GDP of the United Kingdom and the Greene’s disinflation comments of the BOE.
- Trump supposedly gives Treasury Secretary Besent Margen to adjust technological controls on China.
- USA adds 139K jobs in May, exceeding forecasts; The unemployment rate remains stable at 4.2%.
The GBP/USD registered minimal profits during the US session after reaching a daily maximum of 1,3581, after an article of the Wall Street Journal that suggests that US president, Donald Trump, is granting maneuver margin to the secretary of the US Treasury, Scott Besent, regarding technological sales and lifting the export controls over China. At the time of writing, the PAR is quoted at 1,3532, with an increase of 0.05%.
The pound rises slightly amid the relaxation of commercial tensions between the US and China and an economic panorama of the resilient United Kingdom
The last minute news was received with applause from investors while US actions quoted red. Meanwhile, investors continued to digest a solid employment report in the United States, which shows that the economy added 139K new jobs, exceeding 130k estimates, while the unemployment rate remained unchanged by 4.2%. This demonstrates the resilience of the economy despite the slowdown, mainly driven by the highest interest rates resulting from uncertainty about tariffs.
The sterling pound has benefited from the general weakness of the US dollar and a resilient United Kingdom economy due to GDP figures of the first quarter of 2025 stronger than expected. Meanwhile, the member of the Monetary Policy Committee (MPC) of the Bank of England (BOE), Greene, said that the disinflation process is in progress and expects inflation to decrease towards the objective of the bank in the medium term.
The operators will be attentive to the British government spending plans this week. This, together with BR Retail sales, the employment data of the United Kingdom and the trade balance, would be some of the catalysts for the GBP/USD.
In the US, the economic agenda will be attentive to the publication of the figures of the consumer price index (CPI) for May, the Production Price Index (IPP) for the same period, the unemployment requests and the feeling index of the consumer of the University of Michigan (UOM).
GBP/USD price forecast: technical perspective
From a technical point of view, the GBP/USD has an upward trend, finding support in the simple mobile average (SMA) of 20 days in 1,3520. The pair bounced from those levels, comfortably around the area of ​​1,3550, with the operators waiting for a new catalyst.
For an upward continuation, the GBP/USD must exceed the maximum daily of June 5, 1,3616, the highest of the year, which could exacerbate a movement towards 1.37. On the contrary, sellers need to take the torque below 1.35, which could immediately clear the way to test the minimum oscillation of May 25, 1,3412.
LIBRA ESTERLINA FAQS
The sterling pound (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most commercialized currency exchange unit (FX) in the world, representing 12% of all transactions, with an average of $ 630 billion a day, according to data from 2022. Its key commercial peers are GBP/USD, which represents 11% of FX, GBP/JPY (3%) and EUR/GBP (2%). The sterling pound is issued by the Bank of England (BOE).
The most important factor that influences the value of sterling pound is the monetary policy decided by the Bank of England. The Bank of England bases its decisions itself has achieved its main objective of “price stability”: a constant inflation rate of around 2%. Its main tool to achieve this is the adjustment of interest rates. When inflation is too high, the Bank of England will try to control it by raising interest rates, which makes access to credit for people and companies more expensive. This is generally positive for sterling pound, since higher interest rates make the United Kingdom a more attractive place for global investors to invest their money. When inflation falls too much it is a sign that economic growth is slowing down. In this scenario, the Bank of England will consider lowering interest rates to reduce credit, so that companies will borrow more to invest in projects that generate growth.
Published data measure the health of the economy and can affect the value of sterling pound. Indicators such as GDP, manufacturing and services PMI and employment can influence the direction of the sterling pound.
Another important fact that is published and affects the pound sterling is the commercial balance. This indicator measures the difference between what a country earns with its exports and what you spend on imports during a given period. If a country produces highly demanded export products, its currency will benefit exclusively from the additional demand created by foreign buyers seeking to buy those goods. Therefore, a positive net trade balance strengthens a currency and vice versa in the case of a negative balance
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.
