- The GBP/USD reached another fresh maximum, reaching a 45 -month peak on Tuesday.
- The US dollar is being crushed in all areas, driving the pound to higher land.
- The markets are preparing for an early publication of non -agricultural payroll (NFP) of the US on Thursday, with a federal holiday in the US on Friday.
The GBP/USD entered its highest offers in 45 months on Tuesday, approaching a few centimeters to the maximum of four years while the crushing of the US dollar in the general market continues incessantly. Unequal commercial policies, aggravated by public reflections on high tariffs by President Donald Trump, keep the dollar bidders on the tightrope while the countervalues ​​continue to reach maximum of several years.
The economic data and apparitions of the heads of the central banks passed to the background in the face of commercial and budgetary concerns on Tuesday. The US Senate finally approved some version of the “Great and Beautiful Budget Law” of President Trump, which is now addressed to the US House of Representatives for a final approval and another vote. Trump, who campaigned to eliminate the Federal Deficit of the US, is ready to promulgate his bill of expenses, which will add billions of dollars to the US debt load in the next decade.
Trump hit markets with new commercial war threats on Tuesday, warning that Japan could be the next one to face 30-35% tariffs on all goods imported to the US. President Trump also reiterated that he has no intention of delaying his package of reciprocal tariffs that was suspended after being announced in April, which must re -entered into force as of July 9.
The US non -agricultural payroll data will be published a day before this week, with a federal holiday in the US in view for Friday. The publication of the NFP on Thursday is expected to go back to 110K from 139K, and investors will be attentive to any decrease in the decrease in the figures of previous months.
GBP/USD price forecast
The GBP/USD has mounted an upward wave towards new 45 months maximum this week, testing above 1,3780 for the first time since October 2021. The pair has also closed in green for five consecutive months as the US dollar weakens in general.
Cable bidders can be flying too close to the sun, since GBP/USD prices quickly exceed the rising trend lines, with the price action negotiating well above the 200 -day exponential mobile average (EMA) about 1,3080. Technical oscillators are in overcompra territory, warning about a possible decline on the horizon.
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.
