- The GBP/USD rose 0.6% on Tuesday, driven by the dollar outlets.
- The president of the Fed, Powell, sees few movements in the rates, is expected to reversed tariffs.
- US inflation data and United Kingdom GDP growth figures on the horizon.
The GBP/USD regained ground on Tuesday, breaking a three -day run and recovering until the level of 1,2450, rising around two thirds of one percent in the day. The global currency markets slightly sold the US dollar as the appetite for the risk is gently recover in all areas, driven by a moderate appearance of the president of the Federal Reserve (Fed), Jerome Powell, and the expectations that the Last iteration of the tariff threats of the president of the US, Donald Trump, will be avoided with last minute concessions, as has been the employer since Donald Trump assumed the White House.
- Fed Hammack: It is probably appropriate to keep the stable rates for some time
- Williams of the Fed: USA should grow 2% in 2025, 2026
- Jerome Powell testimony: will commit to follow the data on the effects of tariffs
The United Kingdom data is still scarce along the mid -week sessions, but cable operators will be attentive to the publication of the Gross Domestic Product (GDP) of the United Kingdom on Thursday. The United Kingdom’s GDP is expected to show a recovery at an annualized rhythm of 1.1% during the fourth quarter, although the number of the intertramestral GDP of the fourth quarter is expected to be a contraction of -0.1%.
Forex today: the US key IPC takes the center of the stage in the middle of a cautious fed
The US Consumer Price Index (CPI) will be the dominant figure on Wednesday. The general inflation of the US CPI is expected to be maintained at 2.9% year -on -year, while the underlying inflation of the IPC is expected to fall to 3.1% compared to the last 3.2% figure. The US Producer Price Index (IPP) follows Thursday, with underlying IPP inflation at the business level that is expected to cool slightly 3.3% year -on -year from 3.5%.
GBP/USD price forecast
On Tuesday, the GBP/USD shook its low -term bassist impulse, cutting a three -day run streak and recovering some territory in the graph to claim a middle -family range about 1,2450. The torque still remains just south of the Exponential Mobile (EMA) average of 50 days near the 1,2500 zone.
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
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.
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