- The GBP/USD rises 0.27% to 1,3600 after falling to 1,3515 on Friday in the middle of tensions in the Middle East.
- Hostilities between Israel and Iran intensify, keeping markets in suspense, although the appetite for the risk returned on Monday.
- The US dollar index (DXY) falls 0.27% to 97.88 despite geopolitical concerns, since treasure yields decrease.
The GBP/USD shot during the North American session, rising again above the figure of 1.36, since hostilities in the Israel-Iran conflict intensified during the weekend and continued in the new week. At the time of writing, the PAR is quoted at 1,3600, winning 0.27%.
The pound recovers land as the demand for refuge in the USD fades; Operators observe the decisions of the Fed and the BOE
Last Friday, the GBP/USD retreated for risk aversion and collapsed to 1,3515, since Israel carried out attacks on the military and nuclear facilities of Iran, along with selective attacks on senior officials. Since then, Iran has responded, and with both parties exchanging blows, a truce seems distant.
The dollar began the week at a disadvantage, as indicated by the index of the US dollar (DXY), which tracks the performance of the dollar against a basket of six currencies. The DXY is 0.27% down 97.88.
The economic agenda is light on Monday, except for the publication of the manufacturing index of the New York Fed in June, which collapsed for sixth consecutive month at -16.0. Apart from this, all eyes are on May retail sales, before the Federal Reserve Monetary Policy Meeting (FED) from June 17 to 18, which will conclude on Wednesday, followed by the speech of the president of the FED, Jerome Powell. More data, housing reports and business activity reports of the Fed Regional Banks will be published.
In the United Kingdom, the operators are also observing the figures of the consumer price index (CPI), the monetary policy decision of the Bank of England (BOE) and retail sales data.
Expected Central Banks Meetings
The Fed is expected to keep the rates without changes in 4.25%-4.50%, but the operators are waiting for the publication of the latest economic projections. In the United Kingdom, the markets had discounted an 84.21% probability that the BOE maintained the rates without changes in 4.25%, although a 25 basic points (PBS) is expected at the September meeting.
GBP/USD price forecast: technical perspective
Technically speaking, the GBP/USD continues with bullish bias after bouncing in the single mobile average (SMA) of 20 days in 1,3541, which drove the torque again above the 1.36 mark. The relative force index (RSI) indicates that the bulls are in control, but the torque could find resistance since the RSI has failed to print new higher maximums.
On the positive side, the first resistance is the maximum of the year to date (YTD) in 1,3631, followed by 1,3650 and the 1.37 mark. On the other hand, the first GBP/USD support is the 20 -day SMA in 1,3540, followed by 1,3515 of June 13 and 1.35.
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 Swiss Franco.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.41% | -0.24% | -0.32% | -0.21% | -0.81% | -0.92% | -0.08% | |
| EUR | 0.41% | 0.06% | 0.07% | 0.22% | -0.28% | -0.50% | 0.34% | |
| GBP | 0.24% | -0.06% | 0.02% | 0.15% | -0.33% | -0.55% | 0.28% | |
| JPY | 0.32% | -0.07% | -0.02% | 0.12% | -0.79% | -0.96% | -0.17% | |
| CAD | 0.21% | -0.22% | -0.15% | -0.12% | -0.54% | -0.71% | 0.12% | |
| Aud | 0.81% | 0.28% | 0.33% | 0.79% | 0.54% | -0.22% | 0.62% | |
| NZD | 0.92% | 0.50% | 0.55% | 0.96% | 0.71% | 0.22% | 0.84% | |
| CHF | 0.08% | -0.34% | -0.28% | 0.17% | -0.12% | -0.62% | -0.84% |
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.
