- The GBP/USD briefly recovered to new six -month maximums on Thursday before going back.
- Despite facing a technical rejection since 1,3200, the sterling pound remains in a firmly bullish position.
- Trump’s tariffs and American data have been hit the US dollar this week.
The GBP/USD briefly touched the 1,3200 area for the first time in six months on Thursday, climbing new maximums while the dollar becomes negative on all fronts. The “reciprocal” tariffs of the Trump administration and a flat tariff have knocked down the feeling of the market, despite a delayed reaction to the tariff announcements that arrived after the closure of the US markets on Wednesday.
Forex today: the US NFP will be at the Care Center
This week, the United Kingdom economic data publication calendar is relatively scarce, but a new report on non -agricultural payrolls (NFP) will be published on Friday. These NFP data could significantly influence markets as the US economy travels towards a landscape after tariffs, with the expected March figures to serve as an “indicator” of the effects of the tariff strategies of the Trump administration.
The figures of the purchasing managers index (PMI) of services of the US ISM during March further harmed the feeling of investors on Thursday, falling to a minimum of nine months of 50.8 and decreasing to one of its fastest month to month from the pandemic. Business activity and consumer confidence evaporated in the prelude to the Trump administration tariffs, and the realities after tariffs will probably not see a rapid recovery of feeling.
- Fed Jefferson warns that there is no hurry to change the rates
- Fed cook hopes that progress in inflation stamped behind tariffs
The tariff proposals of “Liberation Day” of the Trump Administration have lit a global reaction, with the former US Treasury Secretary, Larry Summers, stating that the Government calculated the tariffs without adequate data. This statement is aligned with the publications of the Trump team, which explain that their reciprocal tariffs are calculated by dividing the net exports of a country to the US by imports from the USA from the USA and then dividing that figure in half, with a minimum tariff of 10%. As a result of the Trump Tariff Methodology “, USA has imposed a” reciprocal “tariff of 10% to Heard Island and the McDonald Islands, a territory that remains completely uninhabited by humans.
The president of the USA, Donald Trump, approved a 10% tariff above all imports effective on April 5, with “reciprocal” tariffs calculated starting on April 9. According to Fitch Ratings, the economic growth of the US will fall below the March reduced forecast. The Fitch Ratings agency has warned That the effects of Trump tariffs will also reach the Federal Reserve (Fed), which could delay the cuts of interest rates while monitoring the impacts of inflation and employment of these tariffs.
GBP/USD price forecast
The GBP/USD received a firm offer on Thursday thanks to the weakened flows of the dollar. However, the Alcistas de la Libra Esterlina faced a firm technical rejection from the 1,3200 zone and pushed the offers back to the 1,3100 region.
In spite of a failed bullish extension, the cable has left a short -term consolidation range and is prepared for greater rise as the torque continues to quote above the 200 -day exponential mobile average (EMA) in 1,2735.
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.
