- The U.S. underlying PCE rises to 2.8%, reinforcing the inflation concerns of the Fed and limiting the upward potential of the GBP/USD about 1,2967.
- Retail sales of the United Kingdom exceed forecasts, the economy grows 0.1% in the fourth quarter of 2024, which drives the pound.
- The market approach now moves to the key US data: ISM PMI, Jolts and the crucial non -agricultural payroll report next week.
The sterling pound remains firm, around 1,2950 against the US dollar, practically unchanged, while operators digest the latest United States inflation report (USA), amid uncertainty about a possible escalation of the commercial war after the imposition of tariffs on cars by Trump. At the time of writing, the GBP/USD exchange rate is 1,2948.
The GBP/USD remains firm despite the highest underlying PCE and the mixed feeling, since the United Kingdom data exceeds expectations and fears of commercial war stalk
The Personal Consumption Expenditure Index (PCE) published by the US Economic Analysis Office (BEA) remained unchanged in 2.5% year -on -year in February. The underlying PCE figure, sought by the Fed as its favorite inflation indicator, expanded 2.8% year -on -year, compared to 2.7% of the same period. Although the figures kept the status quo, inflation continues to move away from the 2% target of the Fed.
Recently, the consumer’s feeling index of the University of Michigan deteriorated slightly, falling from 57.9 in preliminary reading to 57.0. American homes became pessimistic, waiting for prices to increase 5% for a year, while inflation expectations for five years rose from 3.9% to 4.1%. The survey said: “This month’s fall reflects a clear consensus in all demographic and political affiliations.”
On the other side of the Atlantic, retail sales of the United Kingdom in February fell compared to January, but exceeded the estimates of economists of -0.3%, increasing 1% intermensual. In addition, the economy grew 0.1% at the end of 2024, as the Office of National Statistics (ONS) revealed, as analysts expected.
The data pushed to the GBP/USD to their daily peak of 1,2967, but retreated after the investors digited the US figures.
Next week, the United Kingdom’s economic agenda will be absent. In the US, the operators focus on the announcement of Trump tariffs in April, the March Manufacturing PMI, Jolts employment offers and non -agricultural payrolls.
GBP/USD price forecast: Technical Perspectives
The GBP/USD is quoted laterally without an apparent bias on Friday before the weekend, however, a daily closure near the 1.3000 figure could pave the way for greater bullish potential. This is because the buyers kept the bassists to push the exchange rate below 1,2900, preventing the torque testing the simple mobile average (SMA) of 1,2802.
Despite this, the bulls are not out of danger. Although the relative force index (RSI) is bullish, it shows that they are losing some impulse, after withdrawing from the overcompra territory.
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 Japanese and in Japanese.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.21% | -0.33% | 0.51% | -0.48% | -0.48% | 0.02% | -0.28% | |
| EUR | 0.21% | -0.23% | 0.20% | -0.22% | -0.30% | 0.29% | -0.02% | |
| GBP | 0.33% | 0.23% | 0.84% | -0.62% | -0.09% | 0.52% | 0.11% | |
| JPY | -0.51% | -0.20% | -0.84% | -0.98% | -1.01% | -0.46% | -0.79% | |
| CAD | 0.48% | 0.22% | 0.62% | 0.98% | 0.05% | 0.50% | 0.21% | |
| Aud | 0.48% | 0.30% | 0.09% | 1.01% | -0.05% | 0.58% | 0.28% | |
| NZD | -0.02% | -0.29% | -0.52% | 0.46% | -0.50% | -0.58% | -0.23% | |
| CHF | 0.28% | 0.02% | -0.11% | 0.79% | -0.21% | -0.28% | 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.
