- The first level data publications in the United States showed why it is the world’s largest economy.
- The Federal Reserve will announce its decision on monetary policy in the American afternoon.
- The GBP/USD quotes at its lowest level since mid -May, without signals of downward exhaustion.
The GBP/USD pair lost more than 60 pips at the beginning of the American session on Wednesday and defies the 1,3300 figure, while investors weigh data from the United States (USA) better than expected. The sterling pound (GBP) maintained its position during the first half of the day, but capitulated before the broad demand of the US dollar (USD).
US economic resilience was greatly demonstrated
Without data from the United Kingdom, attention focuses on the US, which published several top -level figures. On the one hand, the Julio ADP Change Report showed that the private sector added new positions in July, much better than the expected 78K. In addition, the June reading was reviewed at -23K, better than the -33K previously reported.
The country then reported the preliminary estimate of the GDP of the second quarter, showing that the economy expanded at an annual rate of 3% in the second quarter, much better than the advanced 2.4% or -0.5% of the first quarter. Finally, the Personal Consumer Expenses Index (PCE) increased 2.5% in the same quarter, below the 3.5% registered in the three months until March.
The combination of optimistic figures showed that the US economy is more than resilient at a critical moment: the Federal Reserve (FED) will announce its decision on monetary policy in the American afternoon. It is widely anticipated that the FED maintains the reference interest rate without changes, oscillating between 4.25% and 4.50% amid the concerns of those responsible for policies related to the potential impact of tariffs on the economy.
The president of the USA, Donald Trump, has expressed his anger at the obstinacy of the Fed to maintain such high interest rates, and demanded that they cut at least 3 points. While the Fed announces today, attention will be clearly in the president’s response to the decision. New threats to fire President Jerome Powell will probably be at the top of the Trump list.
Technical perspective: new minimums in sight
The GBP/USD torque has fallen for six consecutive days and currently quotes at levels that were not seen since mid -May. The strong downward impulse is clear in intra -time frames, with technical indicators in the 4 -hour graphic heading south within overall readings, but far from suggesting downward exhaustion.
The first line of buyers is around 1,3250, followed by the 1,3200 mark. A rupture below the latter will support the case of a more pronounced decrease towards the critical threshold of 1.3000. On the positive side, investors will seek a recovery beyond 1,3360 before feeling safe enough to add long positions, pointing to a test of the 1,3420 area.
LIBRA ESTERLINA PRICE TODAY
The lower table shows the percentage of pounding sterling (GBP) compared to the main currencies today. Libra sterling was the weakest currency against the US dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.69% | 0.37% | 0.42% | 0.32% | 0.86% | 0.60% | 0.70% | |
| EUR | -0.69% | -0.30% | -0.38% | -0.40% | 0.11% | -0.09% | 0.05% | |
| GBP | -0.37% | 0.30% | -0.04% | -0.04% | 0.45% | 0.24% | 0.36% | |
| JPY | -0.42% | 0.38% | 0.04% | -0.01% | 0.52% | 0.27% | 0.37% | |
| CAD | -0.32% | 0.40% | 0.04% | 0.01% | 0.54% | 0.28% | 0.41% | |
| Aud | -0.86% | -0.11% | -0.45% | -0.52% | -0.54% | -0.20% | -0.08% | |
| NZD | -0.60% | 0.09% | -0.24% | -0.27% | -0.28% | 0.20% | 0.12% | |
| CHF | -0.70% | -0.05% | -0.36% | -0.37% | -0.41% | 0.08% | -0.12% |
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.
