- The GBP/USD cut previous losses to stay firmly at the level of 1,3550 on Wednesday.
- Medium level economic data of the United Kingdom scattered on the data agenda on Thursday.
- The inflation figures of the PPI at the US business level will be published on Thursday after a softer IPC.
The GBP/USD found some favorable winds on Wednesday, erasing the earnings from the previous session and rising back to the level of 1,3550. The inflation figures of the US Consumer Price Index (CPI).
The economic data of the United Kingdom are still limited during this week. A monthly update of the Gross Domestic Product (GDP) of April for Thursday is expected; However, retroactive growth figures are April and it is unlikely that they have a material impact. The Industrial and Manufacturing Production data of the United Kingdom will also be published on Thursday, which is expected to be reluctant in contraction territory.
On the American side of the Atlantic, the inflation data of the US PPIs will be published on Thursday. PPI inflation is expected at the U.S. underlying business level to remain flat at 3.1% year -on -year until May.
After two days of private commercial conversations held in London, the delegates of the Trump administration and the Chinese government have reached a preliminary commercial policy framework, which is now aimed at the respective offices of Presidents Trump and XI. According to public networks of President Trump, tariffs on Chinese products remain at 55%, while China maintains its 10% import tax over all products manufactured in the US.
GBP/USD price forecast
The GBP/USD currency pair has experienced a setback since its maximum of several years; However, interest in the cable is still robust. The torque maintains stability within a short -term consolidation range about 1,3500 and continues to demonstrate a pronounced bullish inclination, with prices that significantly exceed the 200 -day exponential mobile (EMA) average, which is located about 1,2960.
GBP/USD daily graphics
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.
