- The GBP/USD goes back to 1,3700 after the increase in the underlying PCE of 2.7% year -on -year, slightly above expectations.
- The feeling of the US consumer improves in June; Long -term inflation expectations are reviewed down.
- Progress in the commercial agreement with China and the EU adds impulse to the dollar in the middle of the end of the month.
The GBP/USD goes back more than 0.10% after reaching a maximum of almost four years of 1,3770 on Thursday, falling to 1,3700 while the US dollar recovers land after the publication of the Personal Consumption Expenditure Price Index (PCE) U.S. for May. This, together with an improvement in the feeling of the consumer among American homes, provides a lifeguard to the green ticket.
The pound is softened after a maximum of almost 4 years, since the strongest American inflation and consumer optimism support the dollar bundle
The mood on the market remains optimistic, since the underlying PCE in May increased a 2.7% year -on -year, a tenth above the estimates and data of April. General inflation for the same period increased by 2.3% year -on -year, as expected.
Recently, the University of Michigan (UOM) revealed that the feeling of the consumer in June improved moderately. The index rose from 60.5 to 60.7, while inflation expectations were checked down, with homes waiting for prices to rise from 5.1% to 5% during the next year. For the next five years, inflation is projected to be around 4%, below 4.1%.
Apart from this, the commercial news revealed by the US Secretary of Commerce, Lutnick, said that the US and China finished a commercial agreement two days ago and added that more agreements are about to close. Bloomberg revealed that the European Union and the US could reach a commercial agreement before the deadline of July 9.
The upward trend of the pound has continued while the US dollar is still beaten. The American dollar index (DXY), which follows the dollar’s yield against a basket of six currencies, is down 0.07% in 97.28. Although the end of the month often favor the dollar, Barclays mentioned that he could weaken towards the end of June.
In the United Kingdom, the Dockets were scarce. However, most analysts are examining the fiscal budget of Prime Minister Keir Starmer, which, according to Rabobank, is described as “the ballast of a huge debt/GDP ratio and a current account deficit of the United Kingdom.”
GBP/USD price forecast: technical perspective
The upward inclination of the GBP/USD remains intact, but buyers seem to be losing some impulse after reaching maximum of several years about 1,3770. However, the impulse, as indicated by the relative force index (RSI), suggests that bulls could test the 1,3800 figure in the short term.
On the other hand, if the GBP/USD falls below 1,3700, a fall to 1,3600 is expected, with a greater descent planned below the simple mobile average (SMA) of 20 days in 1,3561. If it is exceeded, the next stop would be the minimum of June 24, 1,3510.
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 US dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -2.25% | -2.29% | -1.39% | -0.72% | -1.61% | -1.88% | -2.29% | |
| EUR | 2.25% | -0.06% | 0.93% | 1.58% | 0.62% | 0.39% | -0.07% | |
| GBP | 2.29% | 0.06% | 1.05% | 1.65% | 0.68% | 0.45% | -0.01% | |
| JPY | 1.39% | -0.93% | -1.05% | 0.65% | -0.27% | -0.46% | -1.01% | |
| CAD | 0.72% | -1.58% | -1.65% | -0.65% | -0.86% | -1.17% | -1.62% | |
| Aud | 1.61% | -0.62% | -0.68% | 0.27% | 0.86% | -0.25% | -0.69% | |
| NZD | 1.88% | -0.39% | -0.45% | 0.46% | 1.17% | 0.25% | -0.45% | |
| CHF | 2.29% | 0.07% | 0.01% | 1.01% | 1.62% | 0.69% | 0.45% |
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.
