GBP/USD weekly perspective: The bullish trend of the sterling pound persists while the operators prepare for the NFP week in the US.
The sterling pound (GBP) initiated a corrective setback against the US dollar (USD) after the GBP/USD torque reached the highest level since February 2022, just below the 1,3600 mark. Everything revolved around the headlines on tariffs in the US and the consequent action of the USD price that emerged as underlying factors behind the GBP/USD performance last week.
The dollar began a solid recovery and kept it almost throughout the week, except for a brief setback on Thursday. The optimism in the commercial front and the hard line of the US Federal Reserve (FED) promoted the change of the USD. It all began with a positive change in the feeling of risk after the US president, Donald Trump, went back to 50% tariffs announced last Friday about imports of the European Union (EU) from June 1, extending the deadline until July 9. Read more…
The GBP/USD is approaching the 1,3500 brand in the middle of a weakest USD
The GBP/USD torque recovers positive traction at the beginning of a new week in the middle of a renewed sale of the US dollar (USD), although it remains below the 1,3500 psychological brand during the Asian session. The Personal Consumption Expenditure Index (PCE) published on Friday aimed at a greater relaxation of inflationary pressures in the US and reinforced the case for more policy relaxation by the Federal Reserve (Fed). To this are added concerns about the worsening of the fiscal condition of the United States, fueled by the approval of the “great project” of President Donald Trump, which exerts a new downward pressure on the USD.
The sterling pound (GBP), on the other hand, continues with its relative higher performance backed by the expectations that the Bank of England (BOE) Pausar at its next meeting on June 18 and took its time before further reducing the costs of loans. This, in turn, is considered another factor that supports the GBP/USD. However, a weaker risk tone limits the losses of the USD and could capo the torque. Read more…
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.
