- Trump imposes additional 25% tariffs on Canadian aluminum and steel, causing reprisals.
- Jolts employment offers exceed forecasts, increasing to 7.74 million in January.
- Markets discount 82 bp of Fed feat cuts, increasing flexibility expectations in July.
- The operators observe the US CPI data on Wednesday and the United Kingdom GDP figures to obtain more direction.
The sterling pound extended its profits against the US dollar on Tuesday, since the latter continued to fall, due to the controversial commercial policies of US President Donald Trump, who added an additional 25% in aluminum and steel imports from Canada, while the latter applies tariffs on imported electricity to New York, Michigan and Minnesota. The GBP/USD quotes at 1,2945, rising 0.53%.
The sterling pound rises 0.38% while US Tariffs on Canada feed risk aversion
The mood on the market is still bleak due to the current trade war, favoring most of the G10 currencies, except for the dollar. The US job rotation and rotation offers report (Jolts) of the US revealed that vacancies increased in January 7,508 million to 7,740 million, exceeding the forecasts of 7.63 million.
The GBP/USD deleted the losses of Monday and rises above 1,2900 while market participants continue to discount greater flexibility by the Federal Reserve. The data of the Chicago Commerce Board (CBOT) showed that investors estimate that the US Central Bank will make the policy more flexible at 82 basic points.
Despite the recent upward trend in the GBP/USD, analysts suggest that it will probably stop in the medium term. Nick Rees, head of Macro Research in Monex Europe, said that, although the fears of recession in the US were “exaggerated”, currency markets “could be wrong for a prolonged period.”
Meanwhile, the operators will be attentive to the US USA Inflation Report on Wednesday. Most analysts foresee the disinflation process, which could increase the possibilities of a Fed rates cut in July. On the other side of the puddle, investors are pending the publication of the figures of the Gross Domestic Product (GDP) of January.
GBP/USD price forecast: Technical Perspectives
The GBP/USD is still rising after having drawn a successive series of higher maximum and minimum. However, the trend has lost some impulse as the relative force index (RSI) reaches overcompra conditions, which could pave the path for a correction. In spite of this, if the PAR exceeds 1,2950, ​​a movement towards 1.3000 is probable. Otherwise, a fall below 1,2900 could exacerbate a decline towards the simple mobile average (SMA) of 200 days in 1,2789.
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 | -0.74% | -0.50% | 0.25% | 0.24% | -0.06% | -0.11% | -0.10% | |
| EUR | 0.74% | 0.25% | 1.02% | 0.99% | 0.69% | 0.64% | 0.65% | |
| GBP | 0.50% | -0.25% | 0.61% | 0.74% | 0.44% | 0.39% | 0.41% | |
| JPY | -0.25% | -1.02% | -0.61% | -0.01% | -0.31% | -0.37% | -0.34% | |
| CAD | -0.24% | -0.99% | -0.74% | 0.01% | -0.29% | -0.34% | -0.33% | |
| Aud | 0.06% | -0.69% | -0.44% | 0.31% | 0.29% | -0.04% | -0.02% | |
| NZD | 0.11% | -0.64% | -0.39% | 0.37% | 0.34% | 0.04% | 0.02% | |
| CHF | 0.10% | -0.65% | -0.41% | 0.34% | 0.33% | 0.02% | -0.02% |
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.
