- The GBP/USD can lose ground as the sterling pound (GBP) faces winds against the cooling of employment and moderate salary growth in the United Kingdom.
- The US dollar was pressed after the most soft US inflation data than expected.
- Trump said he is working to improve US access to Chinese markets and characterized relations between the US and China as “excellent.”
The GBP/USD quotes around 1,3300 during the Asian session on Wednesday, stabilizing after registering profits of more than 1% in the previous session. However, the torque potential can be limited since the sterling pound (GBP) faces winds against the cooling of employment and moderate salary growth in the United Kingdom, factors that could reinforce the expectations of additional cuts of interest rates on the part of the Bank of England (BOE).
This week, market participants prepare for greater volatility in sterling pound, with the publication of the preliminary data of the GDP of the first quarter of the United Kingdom and industrial and manufacturing production on Thursday. The economy of the United Kingdom is expected to have grown 0.6% in the first quarter.
The recent strength in the GBP/USD torque was also driven by a weaker US dollar (USD), which was pressed after the most soft US inflation data than expected. The attention now focuses on the next US economic releases, including the production price index (IPP) and the consumer’s feeling survey at the University of Michigan, both scheduled for later this week.
The US Consumer Price Index (CPI) rose 2.3% year -on -year, slightly below the 2.4% increase in March and market forecasts. The underlying IPC, excluding food and energy, increased 2.8% annually, in line with the previous month and expectations. In monthly terms, both the general and underlying CPI rose 0.2%.
In political developments, US president, Donald Trump, told Fox News that he is working to expand US access to Chinese markets and described the relations between the US and China as “excellent.” Trump also pointed out his willingness to hold direct conversations with President Xi Jinping in search of a broader commercial agreement.
LIBRA ESTERLINA PRICE TODAY
The lower table shows the percentage of pounding sterling (GBP) compared to the main currencies today. Libra sterling was the strongest currency against the US dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.08% | -0.03% | -0.25% | -0.11% | -0.09% | -0.13% | -0.10% | |
| EUR | 0.08% | 0.06% | -0.20% | -0.03% | -0.01% | -0.07% | -0.02% | |
| GBP | 0.03% | -0.06% | -0.25% | -0.09% | -0.06% | -0.13% | -0.07% | |
| JPY | 0.25% | 0.20% | 0.25% | 0.14% | 0.17% | 0.10% | 0.15% | |
| CAD | 0.11% | 0.03% | 0.09% | -0.14% | 0.02% | -0.02% | 0.01% | |
| Aud | 0.09% | 0.00% | 0.06% | -0.17% | -0.02% | -0.04% | -0.01% | |
| NZD | 0.13% | 0.07% | 0.13% | -0.10% | 0.02% | 0.04% | 0.03% | |
| CHF | 0.10% | 0.02% | 0.07% | -0.15% | -0.01% | 0.01% | -0.03% |
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.
