- The ISM services exceeds the forecasts, but inflationary pressures increase with the prices paid at its highest level in 14 months.
- Markets expect the BOE to cut rates at 25 basic points on Thursday, with 75 basic flexibility points already incorporated by 2025.
- The rumors of an US trade agreement with Asia support the feeling; Key BOE and Fed events in the focus this week.
The sterling pound advanced around 0.32% against the US dollar on Monday, returning above the 1.33 zone, while market participants digest data from the United States (USA) who portray that business activity in the services sector is gaining impulse, although it fails to underpin the dollar. At the time of writing, the GBP/USD quotes at 1,3300.
The GBP/USD is triggered before the BOE fees decision, while the expectations of fees of the Fed are reduced to three movements in 2025
The United Kingdom markets are closed while operators prepare for the monetary policy decision of the Bank of England (BOE) on Thursday. Most operators project an interest rate cut of 0.25% by the Central Bank. The data on the other side of the Atlantic failed to boost the dollar, despite the fact that the PMI of Services published by the Supply Management Institute (ISM) showed an improvement in April.
The ISM services PMI expanded to 51.6, from 50.8, and exceeded the estimates of 50.6. A PMI subcomponent suggested a reacting of inflation, since the prices paid by companies increased to their highest level since February 2023, jumping to 65.1 from 60.9.
After the data and solid non -agricultural payroll figures from the US last Friday, the operators had incorporated three interests of interest rates instead of four, according to the futures contract of the federal fund rate of December 2025. Market participants are incorporating 74.5 basic points (PBS) of flexibility or three cuts of 25 pbs, which provides an advantage to the dollar American, since it is projected that the BOE will reduce rates by 75 pbs, but would do it faster than the Federal Reserve.
Consequently, the GBP/USD could be prepared for a setback if operators fail to conquer the 1,3400 mark. Positive commercial news of the US could provide a lifeguard and pave the way for a new test of the latter.
Charles Gasparini of Fox Business revealed that sources on Wall Street suggest that Washington is close to closing an agreement with some Asian countries such as India, South Korea and Japan.
This week, the United Kingdom’s economic agenda will include retail sales, Breeden’s speech of the BOE and the decision of the BOE. In the US, the operators are attentive to the FOMC meeting on Wednesday and the press conference of the president of the FED, Jerome Powell.
GBP/USD price forecast: Technical Perspectives
The GBP/USD has consolidated near the minimums last week, although it remains close to the simple mobile average (SMA) of 20 days in 1,3324. If the bullies wish to continue in command, they need a daily closure above 1.33 to be able to challenge 1,3350 before launching an attack towards the maximum of the year to date (YTD) in 1,3443.
On the contrary, if the vendors enter and drag the exchange rate below 1,3300, this could pave the way for a fall to the minimum daily of April 23, 1,3233 before trying 1,3200.
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 Canadian dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.02% | -0.30% | -0.62% | 0.13% | -0.31% | -0.44% | -0.38% | |
| EUR | -0.02% | -0.05% | -0.37% | 0.38% | -0.06% | -0.19% | -0.13% | |
| GBP | 0.30% | 0.05% | -0.54% | 0.43% | -0.01% | -0.15% | -0.08% | |
| JPY | 0.62% | 0.37% | 0.54% | 0.75% | 0.31% | 0.25% | 0.34% | |
| CAD | -0.13% | -0.38% | -0.43% | -0.75% | -0.74% | -0.58% | -0.51% | |
| Aud | 0.31% | 0.06% | 0.01% | -0.31% | 0.74% | -0.14% | -0.06% | |
| NZD | 0.44% | 0.19% | 0.15% | -0.25% | 0.58% | 0.14% | 0.06% | |
| CHF | 0.38% | 0.13% | 0.08% | -0.34% | 0.51% | 0.06% | -0.06% |
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.
