- The GBP/USD has difficulty gaining significant traction at the beginning of a new week.
- The aggressive expectations for cutting the Fed rates limit the recent up upward movement of the USD and support the torque.
- The GBP bulls seem reluctant to the BOE policy meeting on Thursday.
The GBP/USD torque begins the new week with a moderate tone and oscillates within a narrow range around the area of ​​1,3260-1.3265, about a minimum of a week reached during the Asian session.
The US dollar (USD) remains defensive below a maximum of several weeks amid a greater economic uncertainty due to the tariff plans of the US president, Donald Trump, which turns out to be a key factor that acts as a tail wind for the GBP/USD torque. In addition, the perspective of a greater relief of politics by the Federal Reserve (Fed) seems to undermine the dollar even more.
Despite the best publication of the US Non -Agricultural Payroll (NF) report on Friday, investors seem convinced that the US Central Bank will resume its cycle of feat cuts in June in June and will reduce indebtedness costs by 100 basic points by the end of this year. This, together with the optimism about the possible de -escalation of the commercial war between the US and China, affects the demand of the secure shelter dollar.
However, the operators seem reluctant to open new upward positions around the GBP/USD and choose to wait for the risk of the key event of this week: the monetary policy meeting of the Bank of England (BOE) on Thursday. It is widely expected that the Central Bank of the United Kingdom reduces interest rates in 25 basic points and adopt a slightly moderate posture in the face of the downward risks for growth derived from the commercial war.
Apart from this, the operators this week will face the publication of the Minutes of the FOMC meeting, which will influence the USD price dynamics and will provide a significant impulse to the GBP/USD. Meanwhile, the publication of the US ISM services on Monday will be observed to take advantage of short -term opportunities later during the early session of North America.
Economic indicator
Decision on the BOE interest rate
He Bank of England Announce your decision on the interest rate at the end of your eight meetings scheduled per year. If the BOE adopts a hard line posture on the inflationary perspectives of the economy and elevates interest rates, it is generally bullish for sterling pound (GBP). Similarly, if the BOE adopts a moderate vision of the United Kingdom economy and keeps interest rates without changes, or reduces them, it is considered bassist for the GBP.
Read more.
Next publication:
MARD MAY 08, 2025 11:00
Frequency:
Irregular
Dear:
4.25%
Previous:
4.5%
Fountain:
Bank of England
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.
