- The GBP/USD falls 0.21% while Trump’s tariff threats feed the demand for safe refuge.
- The IPC of the United Kingdom jumps to 3%, exceeding the forecasts, but the path of relaxation of the BOE remains intact.
- FOMC minutes are in the focus while the Fed points out that there is no hurry to cut rates.
The sterling pound retreated below 1,2600 during the American session, since the housing data in the United States were mixed, while inflation in the United Kingdom reached its highest level since March 2024. Despite this, the GBP /USD is quoted at 1,2585, with a 0.21%drop.
Libra weakens despite the increase in inflation in the United Kingdom, since the fed posture limits the rise
The appetite for the risk promoted the demand for shelter assets such as the US dollar after the US president, Donald Trump, threatened to apply 25% tariffs to cars, pharmaceutical products and chips. Meanwhile, the construction beginnings in the US fell in January due to climatic interruptions, falling from 1,515 million to 1,366 million, or a 9.6%drop.
The US Census Office revealed that construction permits in the US for the same period improved, with figures that increased from 1,482 million to 1,483 million, an increase of 0.1%.
Apart from this, investors expect the publication of the latest minutes of the monetary policy meeting of the Federal Open Market Committee (FOMC). At the last meeting, Fed adjusted its language, eliminating progress in inflation, emphasizing that “it is still somewhat high”, a slight hard line bias. Since then, most officials have maintained a more neutral position, saying that the Central Bank is in no hurry to relax politics.
This favors a greater fall in the GBP/USD, since the differential of interest rates between the United Kingdom and the US was reduced, since the BOE cut rates earlier this month.
However, during the European session, the United Kingdom consumer (CPI) index increased 3% in January, exceeding economists’ forecast of an increase of 2.8%. The National Statistics Office (ONS) blamed the increase in inflation to a lower fall than expected in air rates and increased gas prices.
Given the fundamental background, the GBP/USD could consolidate. The increase in salary growth figures and inflation would be a challenge for the BOE, which has started a relaxation cycle. However, a minimum wage of 7% will begin in April, and an economic slowdown paints a stagflation scenario for the United Kingdom.
GBP/USD price analysis: technical perspective
The GBP/USD fell below 1,2600 after the publication of the US economic data as the appetite for the risk deteriorates, the US dollar rises, and the torque reaches a minimum of three days of 1,2578. Although the relative force index (RSI) remains bullish, buyers have lost impulse, since the RSI points down. That said, if the PAR falls below the maximum of February 5, 1,2549, a 50 -day simple mobile average (SMA) test in 1,2463 is on the horizon.
On the other hand, if buyers recover 1,2600, they could challenge the peak of the year to date (YTD) in 1,2639.
LIBRA ESTERLINA PRICE TODAY
The lower table shows the percentage of pounding sterling (GBP) compared to the main currencies today. The sterling pound was the strongest currency against the Canadian dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.13% | 0.12% | -0.47% | 0.14% | 0.07% | -0.14% | -0.07% | |
| EUR | -0.13% | -0.01% | -0.60% | 0.00% | -0.03% | -0.27% | -0.20% | |
| GBP | -0.12% | 0.00% | -0.59% | 0.02% | -0.05% | -0.27% | -0.19% | |
| JPY | 0.47% | 0.60% | 0.59% | 0.59% | 0.53% | 0.30% | 0.39% | |
| CAD | -0.14% | -0.01% | -0.02% | -0.59% | -0.06% | -0.28% | -0.21% | |
| Aud | -0.07% | 0.03% | 0.05% | -0.53% | 0.06% | -0.22% | -0.14% | |
| NZD | 0.14% | 0.27% | 0.27% | -0.30% | 0.28% | 0.22% | 0.08% | |
| CHF | 0.07% | 0.20% | 0.19% | -0.39% | 0.21% | 0.14% | -0.08% |
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.
