- The GBP/USD rises from a minimum of 1,3369 while Bowman points out that a rate cut in July could be appropriate.
- US attacks to Iran nuclear sites unleash market volatility; Tehran closes the Ormuz Strait and retaliates.
- The United Kingdom preliminary services improves 51.3; The US manufacturing exceeds expectations, services fall slightly.
The sterling pound advances during the North American session, rising 0.37% against the US dollar, since the appetite for the risk improved amid the events in the Middle East. At the time of writing, the GBP/USD quotes at 1,3500.
Libra rises 0.37% while Fed Dovish comments compensate for increased risk in the Middle East and improve appetite for risk
On Saturday, the United States (USA) attacked Iran’s nuclear facilities, triggering an opening of risk aversion at the current negotiation week. The US dollar rose, while oil prices opened upwards; However, the WTI has recently facing the decline.
Tensions in the Middle East remain high. Iran took reprisals, approving the closure of the Ormuz Strait, and launched missile attacks against Israel. US officials revealed that Iran’s retaliation actions could occur as soon as the next day or two. Despite this, the White House still looks for a diplomatic resolution, according to Reuters sources.
However, the dovish comments of the Governor of the Federal Reserve, Michelle Bowman, which favor a feat of fees in July, weighed on the US dollar. The GBP/USD has recovered from the daily minimums of 1,3399, near the simple mobile average (SMA) of 50 days.
Recently, the US M&P manufacturing PMI for June was 52.0, above the expectations of 51.0 but without changes compared to the previous reading. The PMI of services fell from 53.7 to 53.1 in June, a little above the estimates of 53.0.
In the United Kingdom, the economy shows some signs of recovery, since the preliminary PMI of Global S&P services increased to 51.3 in June, from 50.9, below the forecasts of 51.5. The manufacturing PMI continued to show contraction readings of 7.7, above the estimates of 46.6.
GBP/USD price forecast: technical perspective
The GBP/USD bullish trend is maintained, but faces strong resistance. Buyers need to push the exchange rate above the simple mobile average (SMA) of 1,3508. This will clear the way to challenge 1,3550, 1,3600 and the maximum of the year to date (YTD) of 1,3631. On the contrary, a daily closure below 1,3500 will expose a setback, with the vendors pointing to the 50 -day SMA in 1,3399.
LIBRA ESTERLINA PRICE THIS WEEK
The lower table shows the percentage of sterling pound (GBP) compared to the main currencies this week. Libra sterling was the strongest currency against the New Zealand dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.70% | -0.66% | -0.18% | -0.07% | 0.06% | 0.08% | -0.50% | |
| EUR | 0.70% | 0.02% | 0.57% | 0.65% | 0.73% | 0.80% | 0.16% | |
| GBP | 0.66% | -0.02% | 0.59% | 0.63% | 0.70% | 0.77% | 0.15% | |
| JPY | 0.18% | -0.57% | -0.59% | 0.09% | 0.21% | 0.31% | -0.41% | |
| CAD | 0.07% | -0.65% | -0.63% | -0.09% | 0.17% | 0.15% | -0.48% | |
| Aud | -0.06% | -0.73% | -0.70% | -0.21% | -0.17% | 0.05% | -0.56% | |
| NZD | -0.08% | -0.80% | -0.77% | -0.31% | -0.15% | -0.05% | -0.62% | |
| CHF | 0.50% | -0.16% | -0.15% | 0.41% | 0.48% | 0.56% | 0.62% |
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).
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.
