- The GBP/USD is softened to 1,3560 after giving early earnings during the American session.
- Negotiation volumes remain low due to holidays in the United Kingdom and US markets.
- Attention focuses on the elders of the FOMC, the U.S. underlying PCE inflation and spending data.
The sterling pound (GBP) is moving lateral against the US dollar (USD) after reaching its highest level in three years at the beginning of this week’s session. The GBP/USD torque shot at 1,3593 in the early hours of Monday’s session. At the time of writing, the pair has given some of the early profits to quote around 1,3560 during the late American session amid negotiation volumes reduced by the festivities.
The slight correction from the maximum daily occurs while the US dollar has gained ground in the face of hopes of a decrease in commercial tensions between the US and the EU, with the US dollar index (DXY) keeping stable about 99.00, recovering from a minimum of four weeks.
Last Friday, US president, Donald Trump, revived commercial tensions by threatening to impose a 50% tariff on EU products from June 1, citing stagnant negotiations and adding to a state of risk aversion. However, on Sunday, Trump retracted from this threat, agreed to extend the deadline until July 9. Meanwhile, the general weakness still persists due to the growing fiscal concerns and the cautious tone of the Fed about economic perspectives.
Despite the decrease in commercial tensions, the sterling pound already had favorable winds from stronger domestic data than expected last week. Retail sales of the United Kingdom increased 1.2% in April, marking the fourth consecutive monthly increase and highlighting the continuous resilience of the consumer compared to current tax increases and persistent commercial uncertainty. The increase suggests an underlying robust demand in the economy, which could support the cautious posture of the Bank of England (BOE).
In the front of inflation, price pressure remains uncomfortably high. General inflation accelerated up to 3.5% year -on -year in April, exceeding market expectations and reinforcing concerns that the path to 2% of the BOE remains unequal. The underlying IPC also rose to 3.8%, adding arguments so that those responsible for the policy maintain a waiting and observation approach before committing to feats.
Looking ahead, without major economic publications scheduled in the United Kingdom this week, it is likely that the sterling pound will take signs of the speeches of the BOE officials, which could provide new perspectives on the policy position of the Central Bank.
Huw Pill, Chief Economist of the BOE, will pronounce a main speech at the 2025 Annual Economics Conference of the Oesterreichische NationalBank and Suerf, discussing “monetary policy: taking a walk on the side of the offer.”
In contrast, the US calendar is more moved. Key publications include the MANDER OF THE FOMC meeting on Wednesday and the Fed’s favorite inflation indicator – the Personal Consumer Price Index (PCE) – on Friday, along with personal income and expenses data. These figures will be crucial to evaluate the Fed Rate path, especially after recent comments that suggest a patient posture about politics flexibility.
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 Australian dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.13% | -0.27% | 0.19% | 0.03% | 0.09% | -0.22% | -0.01% | |
| EUR | 0.13% | -0.13% | 0.36% | 0.16% | 0.22% | -0.08% | 0.13% | |
| GBP | 0.27% | 0.13% | 0.15% | 0.29% | 0.35% | 0.04% | 0.28% | |
| JPY | -0.19% | -0.36% | -0.15% | -0.15% | -0.11% | -0.47% | -0.20% | |
| CAD | -0.03% | -0.16% | -0.29% | 0.15% | 0.08% | -0.24% | -0.02% | |
| Aud | -0.09% | -0.22% | -0.35% | 0.11% | -0.08% | -0.35% | -0.08% | |
| NZD | 0.22% | 0.08% | -0.04% | 0.47% | 0.24% | 0.35% | 0.23% | |
| CHF | 0.01% | -0.13% | -0.28% | 0.20% | 0.02% | 0.08% | -0.23% |
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.
