- Retail sales of the United Kingdom surprise up but fail to boost sterling pound.
- The feeling of the consumer in the US falls dramatically; Inflation expectations reach maximum in several years.
- The markets digest mixed trade signals while China considers tariff exemptions on US products.
The sterling pound records losses against the strong US dollar, although it remains above 1,3300. A solid retail sales report of the United Kingdom failed to support the cable, which records losses of 0.20% while the GBP/USD quotes in 1,3311.
The GBP/USD remains above 1,3300 in the midst of a weak feeling in the US, high inflation expectations and the current tariff drama
The narrative of the financial markets has not changed, with the operators focused on the commercial policies of US President Donald Trump and China’s response to tariffs. Although the economic data has gone to the background, the deterioration in the feeling of the consumer in the US and a solid retail sales report of the United Kingdom prevented the GBP/USD from falling below 1.33.
Bloomberg reported that China could exempt some American tariff products as costs increase. The news was well received by the markets, improving the feeling of risk, but was ephemeral.
The data of the University of Michigan (UOM) revealed that the feeling of the consumer in April fell to its lowest level, from 57 to 52.2, the fourth lowest reading in the data series that dates back to the late 1970s. The same survey revealed that inflation expectations for a year increased from 5% to 6.5% and for five years they rose to 4.4% from 4.1%.
Previously, retail sales in the United Kingdom increased unexpectedly, the ONS revealed. March sales increased a monthly 0.4%, lowering 0.7%, exceeding the forecasts of a contraction of -0.4%. Meanwhile, operators are attentive to Megan Greene’s words of the Bank of England (BOE), who said: “We are not sure whether the weakness in the United Kingdom’s economy is caused by demand or supply.”
He added that the labor market has weakened quite slowly and that the Central Bank is seeing a production gap, which could help reduce inflation.
GBP/USD price forecast: technical perspective
The GBP/USD maintains a bullish bias but seems to be about to break the key support in 1,3300 in the short term. The relative force index (RSI) shows that sellers gain impulse, although the RSI remains bullish. However, the failure of buyers to decisively break 1,3400 exacerbated the fall of the GBP/USD to key support levels.
The next support of the torque would be the simple mobile average (SMA) of 50 days in 1,3238, followed by 1,3200. On the contrary, if buyers push the GBP/USD above 1,3350, a new 1.34 test is expected.
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 Swiss Franco.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.26% | -0.10% | 1.28% | 0.03% | -0.16% | -0.57% | 1.60% | |
| EUR | -0.26% | -0.52% | 0.97% | -0.28% | -0.62% | -0.87% | 1.31% | |
| GBP | 0.10% | 0.52% | 1.67% | 0.26% | -0.10% | -0.35% | 1.84% | |
| JPY | -1.28% | -0.97% | -1.67% | -1.19% | -1.54% | -1.70% | 0.36% | |
| CAD | -0.03% | 0.28% | -0.26% | 1.19% | -0.32% | -0.61% | 1.59% | |
| Aud | 0.16% | 0.62% | 0.10% | 1.54% | 0.32% | -0.24% | 1.94% | |
| NZD | 0.57% | 0.87% | 0.35% | 1.70% | 0.61% | 0.24% | 2.22% | |
| CHF | -1.60% | -1.31% | -1.84% | -0.36% | -1.59% | -1.94% | -2.22% |
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.
