The GBP/USD explores greater bullish potential as the feeling of the market bounces after the delay of tariffs

  • The GBP/USD rose again above 1,2800 on Wednesday, since the appetite for the risk is recovering strongly.
  • The Trump administration again delayed its own tariffs, causing the markets to shoot.
  • The key USA data still remain on the agenda this week, with the inflation of the IPC and PPI of the US, as well as the results of the consumer’s feeling survey.

The GBP/USD tested higher levels on Wednesday, going up again above the 1,2800 zone after the feeling of the general market was recovered in all areas. The Trump administration has changed its “without exceptions, without delays” tariff policy, and has delayed tariffs again, this time for 90 days.

The global markets responded widely shooting, although the bullish appetite remained limited for the cable, which rose a lean 0.3%. The president of the United States, Donald Trump, still has a “reciprocal” tariff of 10% in force while the White House gives most of its commercial partners time to negotiate levels of tariffs that were initially calculated by dividing imports by US exports, however, the Trump administration has increased tariffs on Chinese products to 125% Own China’s retaliation tariff on US products of 84%, which will almost exclusively impact US agriculture.

The rates markets have been pushed abruptly outside their percher of feat cuts, with rates swap operators now assessing 75 basic points of interest rate cuts by the Federal Reserve (FED) for the rest of the year. Rate markets still bet that the next cut of a quarterfinal will be delivered in June, however, JPMorgan analysts have warned that it is much more likely that the Fed is trapped in a waiting cycle and see due to uncertainty about tariffs until at least September.

Everything focuses on US data for the rest of the negotiation week: the US consumer price inflation figures (CPI) are scheduled for Thursday, with the inflation of the US Production Price Index (PPI) and US and the results of the consumer’s feeling index of the University of Michigan (UOM) programmed to be published on Friday. This will be the last outbreak of key inflation figures and feeling of the US of the 2025 Phase, marking a key indicator for the rest of the calendar year.

GBP/USD price forecast

The GBP/USD received another offer on Wednesday, extending a slight rebound from the 200 -day EMA just above 1,2700 and looking for a second consecutive day of profits. The bullish impulse is still almost anemic, but the purchase pressure was enough to keep the cable on the high side.

Buyers will still need to extend from the EMA of 200 days before confirming a bullish recovery, but the short impulse seems to have evaporated too fast to allow new sales positions.

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

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