- The GBP/USD rose 0.6% on Tuesday as tariff threats decrease.
- President Trump’s commercial threats are disappearing in the background.
- The data is still medium level to the BOE rates decision on Thursday and the US NFPs on Friday.
The GBP/USD continued to rise on Tuesday, extending a recovery after the early fall of the week due to concerns for the commercial war caused by the wide threats of the president of the US, Donald Trump, to impose severe tariffs on his own constituents in an effort to punish some of the closest commercial allies in the US while ensuring concessions that had already been given to the previous administration.
The mid -week session will be a scarce issue in the economic data agenda with geopolitical headlines vanished in background noise while investors ignore President Trump’s long diatribe on perceived grievances. Even if his tariff speech had the opportunity to materialize, it is unlikely that the United Kingdom attracts a specific commercial anger of Donald Trump.
The figures for the change of employment of ADP in the US will be published on Wednesday, but it is unlikely that the irregular figure will generate a lot of impulse. The results of the activity survey of the Purchasing Managers Index (PMI) Services of the US ISMs are also expected for January, but the figure is expected to change to 54.3 from 54.1. The US key publication this week will be the non -agricultural payroll on Friday, which is expected to decrease to 170,000 from 256,000.
The next decision of the Bank of England (BOE) on Thursday is generally expected to deliver a cutting quarter to the markets. With the US FEDE Reserve (Fed) firmly in a waiting and observation posture due to the US inconsistent policy, the cable interest rate differential is configured to expand slightly this week, limiting the potential bullish.
GBP/USD price forecast
The GBP/USD rose a little more than six tenths of one percent, recovering to 1,2480, but the torque still remains limited below the 1,2500 zone since the 50 -day exponential mobile average (EMA) weighs on the action of the action of the Short -term price.
A successful upward rupture could send the cable offers back to the 200 -day EMA in 1,2700, but a return to the recent minimum about 1,2100 is also in the cards since the price action wasted a bullish turn in the oscillator of convergence/divergence of mobile socks (MACD).
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.