- The GBP/USD rises 0.05% above 1,3600 as the market mood illuminates the fire in the Middle East.
- The governor of the BOE, Bailey, points out possible cuts of fees in the future in weak work data, limiting the pound profits.
- Powell and Collins of the Fed maintain a waiting position; The weak sales of new homes in the US deepen the speculation about feat cuts.
The sterling pound extends its profits to three consecutive days during the week, in the midst of an optimistic mood of the market triggered by the high fire in the Israel-Iran conflict. However, the truce is still fragile after both parties exchanged blows near or after the deadline proposed by Washington. The GBP/USD quotes above 1,3600 after falling below this level previously, rising 0.05%.
The pound extends its 3-day rally in the middle of a fragile Israel-Iran truce and dovish signs of the BOE, while Powell maintains a cautious tone
Today is the second and most recent appearance of the semiannual testimony of the president of the FED, Jerome Powell, before the US Congress. It is expected that he will deliver the same message, in a waiting mode on the Central Bank, while evaluating the possible impact of tariffs on inflation. He said that tariffs have an impact on inflation, but wants to address it carefully when inflation is not back to 2%.
Previously, the president of Boston’s Fed, Susan Collins, reiterated yesterday’s words, saying that monetary policy is well positioned, that the US economy is solid and that there is time for patience.
As for the data, the sales of new homes in the US fell in May, -13.7% of 722,000 in April to 623,000. Analysts were waiting for a fall to 693,000 units. The high mortgage rates at 30 years, almost 7%, are the cause that consumers refrain from buying new houses.
In the United Kingdom, a dovish inclination of the Governor of the Bank of England (BOE), Andrew Bailey, limited the advance of the GBP/USD by stating that the rates could lower, although with caution due to a weakened labor market.
During the week, the United Kingdom’s economic agenda will have speakers of the BOE and the publication of growth figures. In the US, requests for lasting goods, Speeches of the Fed, GDP and inflation data could mark the tone for the GBP/USD torque.
GBP/USD price forecast: technical perspective
The GBP/USD reached a new annual maximum in 1,3641, potentially opening the door to greater rise. However, it is worth noting that a daily closure below 1,3600 could sponsor a setback. However, the relative force index (RSI) suggests that the torque could be consolidated after becoming flat.
GBP/USD rise resistance is found in 1,3644/50, followed by 1,3700. A rupture of this last will expose 1,3750. On the contrary, if the torque falls below 1,3600, look for vendors testing the simple mobile average (SMA) of 20 days in 1,3524. If it is exceeded, the next stop would be the 50 -day SMA in 1,3415.
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 US dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -1.43% | -1.59% | -0.76% | -0.06% | -0.98% | -1.20% | -1.42% | |
| EUR | 1.43% | -0.20% | 0.75% | 1.39% | 0.41% | 0.24% | -0.02% | |
| GBP | 1.59% | 0.20% | 0.97% | 1.59% | 0.60% | 0.43% | 0.17% | |
| JPY | 0.76% | -0.75% | -0.97% | 0.67% | -0.26% | -0.40% | -0.76% | |
| CAD | 0.06% | -1.39% | -1.59% | -0.67% | -0.87% | -1.13% | -1.39% | |
| Aud | 0.98% | -0.41% | -0.60% | 0.26% | 0.87% | -0.19% | -0.44% | |
| NZD | 1.20% | -0.24% | -0.43% | 0.40% | 1.13% | 0.19% | -0.26% | |
| CHF | 1.42% | 0.02% | -0.17% | 0.76% | 1.39% | 0.44% | 0.26% |
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.
