- The BOE cuts rates to 4.25% with a divided vote; Two members supported not changing, seen as a Hawkish signal.
- Trump and Starmer announce a commercial agreement between the US and the United Kingdom, promoting the GBP/USD despite the positive data of unemployment applications in the US.
- The Fed will probably keep the rates without changes while Powell cites risks of the dual mandate; Unemployment requests fall to 228k.
The sterling pound advanced during the North American session after the Bank of England (BOE) reduced the indebtedness costs with a vote of 7-2, with two members voting to keep the rates without changes. Positive employment data in the US failed to boost the dollar, while a commercial agreement between the US and the United Kingdom is a wind in favor for the GBP/USD, which is quoted at 1,3300, rising 0.15%.
The GBP/USD goes up after the BOE three-way vote points to caution and the Trump-Starmer pact adds a wind in favor
The BOE reduced the rates to 4.25% on Thursday, as expected, in what was perceived as a Hawkish cut due to the divided vote, with two members voting for a cut of 50 basic points, five for a cut of 25 basic points and two more to keep the rates at 4.50%.
This promoted the upward cable, although the announcement of a commercial agreement between the US and the United Kingdom supported the GBP/USD to stay above the level of 1.33.
Recently, US President Donald Trump and the Prime Minister of the United Kingdom, Keir Starmer, kept a call during which they praised each other to reach an agreement that would be mutually beneficial for both countries.
“This opens a tremendous market for us,” Trump said about the agreement.
Apart from this, the number of Americans who submit unemployment requests decreased, according to the US Department of Labor The initial unemployment applications for the week that ended on May 3 increased to 228,000, below 230,000 expected and less than the previous reading of 241,000.
The data justified the decision of the Federal Reserve (FED) to maintain unchanged fees on Wednesday, despite the fact that Fed President Jerome Powell declared that the risks of the dual mandate of maximum employment and price stability have increased. Today’s employment data suggests that the Central Bank can continue to maintain unchanged fees and wait to see if inflation is maintained inside the 2% threshold or increases mainly due to tariffs.
GBP/USD price forecast: Technical Perspectives
The upward GBP/USD trend is in doubt since the price action shows three successive days reaching lower and lowest minimums, indicating that buyers are losing impulse. Impulse -based indicators, such as the relative force index (RSI) in 58.14, reached their lowest level since mid -April, indicating that sellers are intervening.
For a bullish continuation, the GBP/USD needs to exceed 1,3400. A rupture of this last will expose the maximum of the year to date (YTD) of 1,3443, followed by 1,3500. On the contrary, a fall below 1,3300 could clear the way to test 1,3250 followed by the 1,3200 figure.
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 Canadian dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.65% | -0.22% | 0.44% | 0.75% | 0.52% | 0.37% | 0.27% | |
| EUR | -0.65% | -0.59% | 0.05% | 0.36% | 0.14% | -0.01% | -0.12% | |
| GBP | 0.22% | 0.59% | 0.42% | 0.95% | 0.74% | 0.59% | 0.48% | |
| JPY | -0.44% | -0.05% | -0.42% | 0.31% | 0.09% | 0.02% | -0.06% | |
| CAD | -0.75% | -0.36% | -0.95% | -0.31% | -0.51% | -0.37% | -0.48% | |
| Aud | -0.52% | -0.14% | -0.74% | -0.09% | 0.51% | -0.16% | -0.26% | |
| NZD | -0.37% | 0.00% | -0.59% | -0.02% | 0.37% | 0.16% | -0.12% | |
| CHF | -0.27% | 0.12% | -0.48% | 0.06% | 0.48% | 0.26% | 0.12% |
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.
