- The GBP/USD falls while Trump imposes 30% tariffs on the EU and Mexico, causing a mixed reaction in the market.
- Inflation in the US is expected to increase 2.7% year -on -year, indicating the impact of tariffs on consumers.
- The deceleration of the GDP of the United Kingdom increases the betting bets of BOE rates before the publication of the CPI.
The sterling pound decreased 0.18% during the US session while the dollar recovers after the wave of tariffs of US President Donald Trump that included the European Union (EU) and Mexico. Although initially caused a reaction of risk aversion, the feeling changed positively in the actions, but not in the currency space. The GBP/USD is quoted at 1,3453 at the time of writing.
The cable descends as commercial tensions and inflation risks increase cloudy
During the weekend, US President Donald Trump announced 30% tariffs on letters sent to the European Union (EU) and Mexico, the latter being less affected than 35% tariffs taxes to Canada last Thursday.
Meanwhile, the current week began with a deteriorated mood. However, merchants seem confident that three of the largest members of the US, Canada, the EU and Mexico, would sign agreements before the fixed deadline of August 1.
In the data front, the publication of inflation figures will be the focus on July 15. The consumer price index (CPI) is expected to increase 2.4% to 2.7% year -on -year in June. Excluding volatile elements such as food and energy for the same period, it would reach the threshold of 3% year -on -year, rising from 2.8% in an important sign that the impact of tariffs is being felt by consumers.
This will exert pressure on the Federal Reserve, which until now has witnessed a sudden change of opinions on current monetary policy. The governors Waller and Bowman, and the president of the Fed of San Francisco, Mary Daly, bowed to the Dovish side, waiting at least two feat cuts in 2025.
In the United Kingdom, the figure of the Gross Domestic Product (GDP) showed that the economy is slowing down, thus increasing the possibilities of more rates cuts by the Bank of England (BOE). Even so, merchants need to digest the publication of CPI figures in the United Kingdom. Any weakness would be the green light for GBP/USD sellers to drive the downward price action, after the torque reached an annual peak of 1,3788 on July 1.
GBP/USD price forecast: technical perspective
The GBP/USD collapses below the figure of 1,3500 and the 50 -day SMA in 1,3495, sponsoring the current fall to 1,3450 and below. The momentum has become bassist in the daily chart, as indicated by the relative force index (RSI), but the price action indicates that the last line of bull defense would be the minimum of June 23, 1,3369. On the contrary, a recovery above 1,3500 paves the way to challenge the 20 -day SMA in 1,3583.
LIBRA ESTERLINA PRICE THIS MONTH
The lower table shows the percentage of sterling pound (GBP) compared to the main currencies this month. Libra sterling was the strongest currency against the Japanese and in Japanese.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.89% | 2.12% | 2.40% | 0.58% | 0.28% | 1.86% | 0.51% | |
| EUR | -0.89% | 1.23% | 1.41% | -0.31% | -0.50% | 0.95% | -0.36% | |
| GBP | -2.12% | -1.23% | 0.28% | -1.49% | -1.71% | -0.27% | -1.56% | |
| JPY | -2.40% | -1.41% | -0.28% | -1.74% | -2.07% | -0.55% | -1.83% | |
| CAD | -0.58% | 0.31% | 1.49% | 1.74% | -0.31% | 1.24% | -0.08% | |
| Aud | -0.28% | 0.50% | 1.71% | 2.07% | 0.31% | 1.46% | 0.15% | |
| NZD | -1.86% | -0.95% | 0.27% | 0.55% | -1.24% | -1.46% | -1.30% | |
| CHF | -0.51% | 0.36% | 1.56% | 1.83% | 0.08% | -0.15% | 1.30% |
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.
