- The GBP/USD toured family territory on Thursday, advancing about 1,3600.
- Market pressures have cooled in the middle of the week after tariffs affect the feeling.
- The data calendar remains a warm issue during the rest of the week of operations.
The GBP/USD moved graphics in family territory during Thursday, touring the same block of intra -intradic levels near the 1,3600 zone. The feeling of the market in general was recovered from the new concerns for tariffs earlier, but investors continue to bet on a general setback (or more suspensions) of tariffs threatened by US President Donald Trump.
Friday brings a scarce medium level data group to close the operations week. The figures of the Gross Domestic Product (GDP) of the United Kingdom for the month of May will be published early in the London market session at 06:00 GMT. However, retroactive figures are expected to greatly show a weak recovery in already scarce numbers, and the impact on the market will probably remain limited.
With the retarded reciprocal tariffs until August 1, investors are betting on the Trump administration from finding a reason to delay or suspend both the reciprocal tariff package announced initially in April, as a new lot of tariffs aimed at specific countries and sectors announced throughout the first half of the week. Market participants continue to trust that most Trump’s tariff threats will not materialize, and the confidence of the merchants is increasing as the inflationary pressures of the tariffs Trump have managed to impose remain warm in the best case.
GBP/USD price forecast
The GBP/USD continues to move at the lower end of a short -term setback after going back from several years about 1,3800 to early July. The price action has been inclined down; However, the cable continues to quote on the north side of the Exponential Mobile (EMA) side of 50 days about 1,3470. Technical oscillators have moved away from overcompra conditions, but the short -term downward impulse could still have space to advance.
GBP/USD daily graphics
LIBRA ESTERLINA – FREQUENTLY QUESTIONS
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.
