- The GDP of the United Kingdom contracts for the second consecutive month, increasing the probabilities of trimming from the BOE in August to 78%.
- Trump scale the commercial war with tariffs of 35% to Canadian products, scaring markets.
- Increase the bets for rates cuts and tax concerns press the sterling pound before the key data of the United Kingdom next week.
The GBP/USD falls more than 0.59% after worse than expected Gross Domestic Product figures (GDP) in the United Kingdom, which could justify greater relief by the Bank of England (BOE). This and an escalation of the commercial war driven the dollar. At the time of writing, the PAR is quoted in 1,3504 after reaching a maximum of 1,3584.
The GBP/USD sinks 0.59% while the weak growth of the United Kingdom feeds the BOE and Trump cuts imposes 35% tariffs on Canada
The feeling has become negative after the revelation of US President Donald Trump of a commercial letter to Canada in which he imposes 35% tariffs on products with exceptions for USMCA -related products. Consequently, the appetite for the risk deteriorated and the dollar advanced.
In addition, Trump said he is considering general tariffs from 15% to 20% to most commercial partners.
The American dollar index (DXY), which tracks the progress of the green ticket in front of a basket of six currencies, shows 0.26% profits in 97.83,
On the other side of the Atlantic, the GDP of the United Kingdom contracted -0.1% intermensual in May after a fall of -0.3% in the previous month, the Office of National Statistics (ONS) revealed. The ONS revealed that the result reflects weakness in industrial and construction production.
The data has increased the probability of a rate cut by the BOE at the August meeting, with probabilities around 78.3%, compared to 64% two weeks ago, according to LSE data.
This adds pressure to the United Kingdom Chancellor Rachel Reeves, who is expected to increase taxes in the next budget, to balance the public accounts of the government.
Next week, the operators will be attentive to the United Kingdom inflation and employment report. In the US, the agenda will include the consumer price index (CPI) and retail sales data.
GBP/USD price forecast: technical perspective
The upward trend of the GBP/USD remains questionable since the torque has fallen below the 20 -day SMA in 1,3590, but until now it remains above the 50 -day SMA in 1,3492. The impulse indicates that bassists have the advantage, as shown in the relative force index (RSI).
That said, a daily closure below 1,3500 could pave the way for more Losses of the GBP/USD. The first support is 1,3500, followed by the 50 -day SMA. A rupture of this last one will expose 1,3400 and the 100 -day SMA in 1,3248. On the other hand, if the torque remains above 1,3500, buyers will need to overcome the 20 -day SMA to challenge 1,3600.
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 Japanese and in Japanese.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.70% | 1.10% | 2.21% | 0.64% | -0.27% | 0.84% | 0.33% | |
| EUR | -0.70% | 0.41% | 1.26% | -0.08% | -0.89% | 0.17% | -0.37% | |
| GBP | -1.10% | -0.41% | 0.82% | -0.47% | -1.29% | -0.23% | -0.90% | |
| JPY | -2.21% | -1.26% | -0.82% | -1.30% | -2.21% | -1.09% | -1.77% | |
| CAD | -0.64% | 0.08% | 0.47% | 1.30% | -0.88% | 0.24% | -0.44% | |
| Aud | 0.27% | 0.89% | 1.29% | 2.21% | 0.88% | 1.17% | 0.40% | |
| NZD | -0.84% | -0.17% | 0.23% | 1.09% | -0.24% | -1.17% | -0.67% | |
| CHF | -0.33% | 0.37% | 0.90% | 1.77% | 0.44% | -0.40% | 0.67% |
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.
