- GBP/USD trapped in the short -term bassist trend as the Trump tariff cycle begins again.
- Trump has delayed the deadline of tariffs from July 9 to August 1, says there will be no more delays.
- Markets overwhelmingly bet on future tariff delays.
The GBP/USD moved in the graphics about 1,3600 while the market dealt with inconsistent policy messages on the changing tariff policies of President Donald Trump. The reciprocal tariffs announced and delayed immediately in early April have been postponed from July 9 to August 1, and in the course of 24 hours, President Trump has announced that you can and no more delays or suspensions of tariffs can be expected.
Adding more fuel to the tariff fire, President Trump announced a new 50% tariff over all copper imports to the US, which insisted that he will enter into force “today” on Tuesday. Trump also reiterated additional two -digit tariffs on all assets of a handful of countries, including 25% import taxes in all southern Korea and Japan goods. It remains unclear how the Trump administration intends to transfer these costs to foreign countries objective instead of US consumers and importers, who traditionally assume the cost of tariffs and import taxes.
The economic calendar is still scarce this week, leaving investors to deal with the fears of an ongoing commercial war and a general lack of clarity by the Trump administration. Despite a short -term bearish feeling, most investors expect Trump’s team to find reasons to cancel or suspend tariffs once again. The avalanche of commercial agreements that President Trump and the main collaborators of Trump have been promising are already on the president’s desk or the return of the corner, but they have not yet materialized. Investors are still skeptical that a material progress in coercive trade agreements that involve an overimposition to US constituents produces significant results.
GBP/USD price action
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 since then; 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 backed over overtill conditions, but the short -term bass impulse could still have space to continue.
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.
