- GBP/USD hit down behind the salary and employment data of the United Kingdom that were well below the forecasts.
- The US IPC inflation data is on their way, ready to be a high impact report.
- Commercial Data of the United Kingdom and FEELING FEELING OF THE US Consumer will follow later in the week.
The GBP/USD took a step on Tuesday, falling under the weight of a wide deviation in salaries and unemployment figures in the United Kingdom. The inflation data of the US Consumer Price Index (CPI) are scheduled for Wednesday, and cable operators prepare to deal with the medium level commercial data of the United Kingdom later in the week.
Trump administration delegates are completing commercial conversations with Chinese officials in London. The negotiations are close to completing, with loose ends that are expected to be resolved after the closure of Tuesday’s market. The important concessions of any of the parties have not yet been announced or achieved, which generates apprehension among investors while the commercial tensions persist at the policy level.
The first inflation data of the CPI, which reflect the initial effects of the “reciprocal” global tariffs of the Trump administration, are anticipated for Wednesday, with forecasts that predict an increase in the general and underlying CPI. It is projected that the inflation of the general annualized CPI of May increases 2.5% year -on -year from 2.3%, while the underlying CPC is expected to rise to 2.9% from 2.8%.
The production price index (IPP) will be published on Thursday, probably being stable at 3.1% year -on -year. The feeling of the consumer of the University of Michigan will be published on Friday, with expectations of an increase in consumer’s feeling.
GBP/USD price forecast
The GBP/USD has retired from its several -year peaks, however, cable offers remain optimistic. The torque remains stable in a short -term consolidation about 1,3500 and continues to exhibit a strong bullish trend, with prices significantly above the 200 -day exponential mobile average (EMA) located about 1,2960.
GBP/USD daily graphics
LIBRA ESTERLINA FAQS
The sterling pound (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most commercialized currency exchange unit (FX) in the world, representing 12% of all transactions, with an average of $ 630 billion a day, according to data from 2022. Its key commercial peers are GBP/USD, which represents 11% of FX, GBP/JPY (3%) and EUR/GBP (2%). The sterling pound is issued by the Bank of England (BOE).
The most important factor that influences the value of sterling pound is the monetary policy decided by the Bank of England. The Bank of England bases its decisions itself has achieved its main objective of “price stability”: a constant inflation rate of around 2%. Its main tool to achieve this is the adjustment of interest rates. When inflation is too high, the Bank of England will try to control it by raising interest rates, which makes access to credit for people and companies more expensive. This is generally positive for sterling pound, since higher interest rates make the United Kingdom a more attractive place for global investors to invest their money. When inflation falls too much it is a sign that economic growth is slowing down. In this scenario, the Bank of England will consider lowering interest rates to reduce credit, so that companies will borrow more to invest in projects that generate growth.
Published data measure the health of the economy and can affect the value of sterling pound. Indicators such as GDP, manufacturing and services PMI and employment can influence the direction of the sterling pound.
Another important fact that is published and affects the pound sterling is the commercial balance. This indicator measures the difference between what a country earns with its exports and what you spend on imports during a given period. If a country produces highly demanded export products, its currency will benefit exclusively from the additional demand created by foreign buyers seeking to buy those goods. Therefore, a positive net trade balance strengthens a currency and vice versa in the case of a negative balance
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.
