- GBP received a slight demand amid the weakness of the USD, approaching 1,3400.
- Commercial feeling continues to dominate market attention while operators expect clarity over tariffs.
- The United Kingdom CPI inflation will be published on Wednesday, and the double event of the United Kingdom PMI and the US will be published on Thursday.
The GBP/USD rose slightly on Tuesday, approaching (but still unable to capture) the level of 1,3400. The cable is directed towards a series of important data publications on inflation and business perspectives, with the inflation of the consumer price index (CPI) of the United Kingdom scheduled for Wednesday, and a double event of survey results of the Purchasing Management Index (PMI) of the United Kingdom and the US programmed for Thursday.
Commercial holders are still the main engine of global markets this week. Investors maintain the hope that agreements with the US are reached that encourage the Trump administration to remove the tariff gun from the head of their own economy, but the constant derivation towards the unknown is beginning to limit the upward feeling. The Trump administration quickly approaches its own self -imposed term of 90 days on its “reciprocal tariffs” package. Although some potential commercial agreements have been announced, nothing concrete has emerged.
The United Kingdom CPI inflation will be published early on Wednesday. Medium market forecasts anticipate a jump on the monthly CPI at 1.1% MOM from the previous 0.3%. The CPC is also expected to increase, forecasting at 3.3% from 2.6%. It is expected that the underlying CPC inflation of the United Kingdom also rises, predicting in 3.6% year -on -year from 3.4%.
On Thursday it will bring a double publication of the PMI for both the United Kingdom and for the US, the markets expect a general increase in the results of prospective business surveys, while the US figures are expected to be mixed. The US manufacturing PMI is expected to be 50.1 from 50.2, while the service component is expected to remain flat at 50.8.
GBP/USD price forecast
The cable remains limited by 1,3400 at the moment, however, the bullish impulse has remained stubbornly determined, although of slow movement. The GBP/USD broke short -term consolidation this week, but the torque could be prepared for downward correction back to congestion as technical oscillators begin to show signs of overcompra.
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.
