- The GBP/USD rises to 1,3452 while the operators digest US unemployment requests and the fall of the real estate sector.
- The United Kingdom inflation cools slightly; The underlying IPC drops to 3.5% year -on -year in May.
- The Fed and the BOE are expected to maintain the rates; the points graph and the projections under the focus of the market.
The GBP/USD regains land on Wednesday while operators expect the monetary policy decision of the Federal Reserve (FED), amid high voltages in the Middle East and the publication of unemployment requests data in the US at the time of writing, the PAR quotes in 1,3452, with an increase of 0.19%.
The sterling pound wins modestly while the operators prepare for the updates of the central banks and weigh the weak data of the US real estate sector.
Financial markets remain tense since tensions between Israel and Iran are still high. The comments of the president of the United States, Donald Trump, suggest a continuous evaluation about whether Washington will get involved in the conflict or seek a diplomatic exit. The latter seems distant, since Trump hinted that he had run out of patience.
The US economic agenda revealed that initial unemployment applications for the week that ended on June 14 increased by 245K, as expected by economists. Other data showed that the beginnings of housing in May were 1,256 million, below 1,392 million in April, which represents a 9.8% intermenual drop. Construction permits also fell an intermensual -2%, from 1,422 million to 1,393 million.
On the other side of the Atlantic, the inflation of the United Kingdom in May remained almost unchanged, according to the National Statistics Office (ONS). The consumer price index (CPI) rose 3.4% year -on -year, aligned with the forecasts, and the underlying IPC fell from 3.8% to 3.5% year -on -year for the same period.
Fed and BOE decisions below
Given the context, market participants are waiting for the monetary policy decisions of the Federal Reserve (FED) and the Bank of England (BOE). Both central banks are expected to maintain rates without changes, although in the case of the Fed, operators will examine the update of economic projections. In addition, they will examine the points graph, which only requires that two officials move their points up, suggesting a more restrictive monetary policy.
In the front of the BOE, monetary markets expect the next cut of the BOE for September, which could be followed by another 25 basic points in December.
GBP/USD price forecast: technical perspective
The GBP/USD has suddenly reversed its course, quoting about its minimum of two weeks of 1,3410, despite maintaining an upward trend. The relative force index (RSI) shows that the momentum has changed slightly to bassist, since the RSI crossed its neutral line up after reaching a reading of 47.
The GBP/USD needs to overcome 1,3500 for a bullish continuation. Once done, the next resistance level would be the single mobile average (SMA) of 20 days in 1,3531, followed by 1,3600. On the contrary, a fall below 1,3400 will exhibit the 50 -day SMA in 1,3376 before 1,3300.
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 Canadian dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.08% | 0.67% | 0.03% | 0.70% | -0.59% | -0.51% | 0.65% | |
| EUR | -0.08% | 0.47% | -0.05% | 0.62% | -0.55% | -0.59% | 0.57% | |
| GBP | -0.67% | -0.47% | -0.49% | 0.15% | -1.02% | -1.05% | 0.10% | |
| JPY | -0.03% | 0.05% | 0.49% | 0.67% | -0.92% | -0.87% | 0.21% | |
| CAD | -0.70% | -0.62% | -0.15% | -0.67% | -1.22% | -1.20% | -0.05% | |
| Aud | 0.59% | 0.55% | 1.02% | 0.92% | 1.22% | -0.04% | 1.13% | |
| NZD | 0.51% | 0.59% | 1.05% | 0.87% | 1.20% | 0.04% | 1.16% | |
| CHF | -0.65% | -0.57% | -0.10% | -0.21% | 0.05% | -1.13% | -1.16% |
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.
