- The GBP/USD lost more weight on Thursday, entering its sixth consecutive day down.
- Losses accumulate as commercial concerns and inflation fears dominate the feeling of the market.
- The US NFP data data will close a tumultuous week on Friday.
The GBP/USD sank on Thursday, falling for sixth consecutive session and dragging the sterling pound (GBP) almost 3% from top to bottom from the peak last week about 1,3588. The cable is being dragged back into bassist territory as the US dollar (USD) receives an offer in the broad market due to renewed interest rates problems in the midst of US inflation data in rebound and an imminent report of non -agricultural payroll (NFP) on Friday.
The United States economic data (USA) is still much more robust than many market observers and policy managers feared when the Trump administration initiated an endless cycle of tariff and subsequent setbacks. Global reciprocal tariffs have been announced, delayed and resuscitated routinely, but key two -digit tariffs on fundamental industries such as steel and aluminum imports, as well as foreign cars, are already beginning to affect the key inflation indicators.
The increase in PCE reminds Fed observers that fees cuts depend on the success of politics
The inflation of the Personal Consumption Expenditure Index (PCE) USA increased in June, rising an intermencing 0.3%, as many market participants had expected. In annual terms, PCE inflation accelerated to 2.6% year -on -year, exceeding the expectation of staying at 2.5%. The income of consumers in the US also rebounded 0.3% in June, and the growing salary pressures will add more inflationary forces in the future.
The US non -agricultural payrolls (NFP) are still on the data agenda for this Friday, promising to close the negotiation week with a tense publication. The US employment and inflation data have acquired an additional importance for the Fed after this week’s decision to maintain stable interest rates for another meeting period. The general inflation of the annualized PCE, a key inflation indicator for those responsible for the Fed rates policy, has remained above the target range of 2% of the Fed for almost four and a half years.
GBP/USD price forecast
A sixth consecutive day has put the cable in a collision trajectory with the 200 -day exponential (EMA) mobile average about 1,3131. The price action has firmly pivated down after the GBP/USD failed in an upward ascent towards 1,3600, although the new short tickets will face challenges with the technical oscillators already set in overall territory.
GBP/USD daily graphics
LIBRA ESTERLINA – FREQUENTLY QUESTIONS
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
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.
