- Starmer of the United Kingdom promotes an economic association with the US to avoid export tariffs of 10%.
- Trump suggests that tariffs are a lever for new agreements; Besent says that negotiations are underway, raising the feeling of risk.
- Operators expect the GDP data from the United Kingdom and the minutes of the Fed; Persistent inflation in the US could relive the strength of the dollar and weigh on the GBP.
The sterling pound recovers land against the US dollar on Tuesday, rising 0.34% amid renewed hopes that tariffs are effectively used as negotiation tools, since US president, Donald Trump, said “many, many countries are coming to negotiate agreements with us.” At the time of writing, the GBP/USD quotes at 1,2756 after bouncing from minimum daily around 1,2700.
Libra rises 0.34% while optimism about commercial conversations between the US and the United Kingdom and the USD support is softened for a short -term recovery
The hopes fueled by the US Treasury Secretary, Scott Besent, that commercial agreements would be made improved the mood on the market, supporting global shares, while the US dollar retreated something.
The Prime Minister of the United Kingdom, Keir Starmer, said on Monday that they could ensure an economic association with the US to avoid 10% tariffs on British exports to the United States.
Meanwhile, the United Kingdom’s economic calendar is light, with operators attentive to the publication of the figures of the Gross Domestic Product (GDP) from February at the end of the week. Monetary market operators expect the Bank of England (BOE) to cut interest rates at 25 basic points in May, with market participants estimating 75 bp of relief towards the end of 2025.
On the other side of the ocean, the news about tariffs are monopolizing the holders before the publication of the latest minutes of the monetary policy of the Federal Reserve (Fed). After that, the operators will focus on the inflation figures for consumer and producer prices, which are expected to decrease. Higher readings would be an unwanted surprise for investors, pushing the dollar up, due to inflationary pressures.
GBP/USD price forecast: technical perspective
The GBP/USD will probably be marketed laterally for at least two days, since the participants expect the US inflation data and the GDP of the United Kingdom. The range is delineated by the single mobile average (SMA) at the bottom in 1,2736, while the 200 -day SMA is above the spot price in 1,2811.
In case of a bassist resumption, the first support would be 1,2700, followed by the 100 -day SMA in 1,2628. On the contrary, if the bulls enter and claim the 200 -day SMA, 1,2900 could be at stake.
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 pound sterling.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.45% | 0.97% | 0.96% | -0.33% | 0.40% | 0.00% | 0.19% | |
| EUR | -0.45% | 0.80% | 1.14% | -0.15% | -0.11% | 0.22% | 0.35% | |
| GBP | -0.97% | -0.80% | -0.96% | -0.93% | -0.91% | -0.58% | -0.44% | |
| JPY | -0.96% | -1.14% | 0.96% | -1.27% | 0.39% | 0.31% | -0.44% | |
| CAD | 0.33% | 0.15% | 0.93% | 1.27% | 0.38% | 0.37% | 0.24% | |
| Aud | -0.40% | 0.11% | 0.91% | -0.39% | -0.38% | 0.33% | 0.48% | |
| NZD | -0.01% | -0.22% | 0.58% | -0.31% | -0.37% | -0.33% | 0.14% | |
| CHF | -0.19% | -0.35% | 0.44% | 0.44% | -0.24% | -0.48% | -0.14% |
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.
