- GBP/USD promoted by a renewed optimism after the historical post-overxit cooperation agreement between the United Kingdom and the EU.
- Moody’s reduces US credit rating to AA1, citing years of fiscal inaction by US policies responsible.
- FED officials express caution on tariffs; Bostic, Williams and Jefferson highlight uncertainty before the key US data.
The sterling pound recorded solid profits on Monday while the dollar is beaten due to Moody’s’s reduction to the qualification of US debt to AA1, an obstacle to the US dollar. At the time of writing, the GBP/USD quotes at 1,3360, an increase of 0.71%.
Libra wins while the US dollar falls due to tax concerns; The “reboot” between the United Kingdom and the EU adds bullish impulse to the GBP
On Friday, the Moody’s International Qualification Agency attributed more than a decade of inaction by successive administrations and the US Congress to address the deteriorated fiscal position of the country. The news weighed on the American currency, which, according to the US dollar index (DXY), which follows the yield of a basket of six coins against the dollar, lost 0.65% in 100.31, renewing a minimum of seven days.
The sterling pound remains supported by the so -called “restart” of relations between the United Kingdom and the Eurozone (EU). CNN reported that both parties “agreed to a historical agreement aimed at ‘restart’ their post-brexit relationship, relieveing ​​trips on trips and work for hundreds of millions of people in the continent.”
The speakers of the Federal Reserve follow the impact of tariffs
Apart from this, federal reserve officials are crossing the lines. Raphael Bostic of Atlanta’s Fed commented that he leans towards a cut once in 2025 due to uncertainty about tariffs and their impact on the economy.
Recently, John Williams of the Fed in New York added that monetary policy is in a good place and that the Fed can take its time in monetary policy decisions. The vice president of the FED, Philip Jefferson, declared that the impact of tariffs on the Fed mandate is “in the mind”, since the Central Bank of the United States runs the risk of deviating from his mandate, depending on the administration policy elections.
Facing this week, operators expect the publication of the United Kingdom inflation figures for April and retail sales. On the other side of the Atlantic, the Speeches of the Fed, the Preliminary PMIS, the housing data and the initial applications of unemployment will issue the price action.
GBP/USD price forecast: technical perspective
The GBP/USD is prepared to extend its profits if the torque remains above 1,3350. The momentum supports buyers since the relative force index (RSI) remains bullish, pointing out that they are winning traction.
Therefore, a greater increase in 1,3400 is expected, although the operators will face a strong resistance in the maximum of the year to date (YTD) of 1,3443. A rupture of this last will expose 1,3500.
On the contrary, if the GBP/USD falls below 1,3350, the first support would be 1,3300. Once surpassed, the next stop is 1,3250, 1,3200 and the single mobile (SMA) of 50 days in 1,3122.
LIBRA ESTERLINA PRICE TODAY
The lower table shows the percentage of pounding sterling (GBP) compared to the main currencies today. Libra sterling was the strongest currency against the US dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.88% | -0.61% | -0.32% | -0.39% | -0.89% | -0.80% | -0.55% | |
| EUR | 0.88% | 0.02% | 0.39% | 0.32% | -0.12% | -0.09% | 0.11% | |
| GBP | 0.61% | -0.02% | 0.08% | 0.31% | -0.13% | -0.11% | 0.09% | |
| JPY | 0.32% | -0.39% | -0.08% | -0.06% | -0.40% | -0.27% | -0.17% | |
| CAD | 0.39% | -0.32% | -0.31% | 0.06% | -0.49% | -0.41% | -0.22% | |
| Aud | 0.89% | 0.12% | 0.13% | 0.40% | 0.49% | 0.03% | 0.24% | |
| NZD | 0.80% | 0.09% | 0.11% | 0.27% | 0.41% | -0.03% | 0.20% | |
| CHF | 0.55% | -0.11% | -0.09% | 0.17% | 0.22% | -0.24% | -0.20% |
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.
