- The sterling pound falls against the US dollar due to mixed employment data from the United Kingdom for the three months that end in May.
- Salary growth in the United Kingdom slowed, as expected, and ILO unemployment rate accelerated to 4.7%.
- The president of the United States, Trump, denied reports that they claimed that he would soon say goodbye to the Powell of the Fed.
The sterling pound (GBP) falls against the US dollar (USD) on Thursday, quoting below 1,3400, since the United Kingdom National Statistics Office has reported mixed employment data. The report showed that the number of workers added by employers in the three months ending in May was 134K, higher than the previous 89K reading. However, the ILO unemployment rate has increased to 4.7%, above the expectations and the previous reading of 4.6%.
Investors anticipated a weak set of employment numbers, since the latest survey of the recruitment and employment confederation and KPMG accountants indicated that the availability of individuals for work has increased significantly.
The hiring had slowed down in recent months, since the business owners were compensating for the impact of an increase in employers’ contribution to the social security schemes announced by the Foreign Minister of the Exchequer in the Autumn Declaration.
The average profits (excluding and including) bonds increased by 5% year -on -year, largely in line with market expectations, but have decelerated themselves regarding the readings seen in the three months that ended in April.
The slowdown in average profits, a key measure of salary growth, is expected to offer a slight relief to the officials of the Bank of England (BOE), who have worried about the inflation prospects, after the publication of the report of the consumer price index (CPI) warmer than projected on Wednesday. The report showed that both the general and underlying CPI increased at a faster year -on -year rate, reaching 3.6% and 3.7%, respectively.
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 | 0.51% | 0.30% | 0.51% | 0.33% | 0.90% | 0.54% | 0.47% | |
| EUR | -0.51% | -0.21% | -0.02% | -0.15% | 0.41% | 0.06% | -0.01% | |
| GBP | -0.30% | 0.21% | 0.24% | 0.03% | 0.60% | 0.26% | 0.18% | |
| JPY | -0.51% | 0.02% | -0.24% | -0.23% | 0.34% | 0.03% | -0.05% | |
| CAD | -0.33% | 0.15% | -0.03% | 0.23% | 0.65% | 0.22% | 0.14% | |
| Aud | -0.90% | -0.41% | -0.60% | -0.34% | -0.65% | -0.43% | -0.42% | |
| NZD | -0.54% | -0.06% | -0.26% | -0.03% | -0.22% | 0.43% | -0.07% | |
| CHF | -0.47% | 0.01% | -0.18% | 0.05% | -0.14% | 0.42% | 0.07% |
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).
Daily summary of market movements: the sterling pound weakens against the US dollar
- The sterling pound drops 0.25% against the US dollar on Thursday, quoting about a minimum of almost two months around 1,3360. The GBP/USD torque is under pressure due to the deteriorated conditions of the United Kingdom labor market and a firm US dollar.
- At the time of writing, the American dollar index (DXY), which tracks the value of the dollar against six main currencies, trades 0.5% higher, about 98.80.
- The US dollar gains land since the US president Donald Trump has denied reports that would say goodbye to the president of the Federal Reserve (Fed), Jerome Powell. However, Trump continued to criticize him for not lowering interest rates.
- President Trump acknowledged in an interview with the Royal Network America’s Voice on Wednesday that his dismissal of Powell could cause agitation in the markets. “I would love if he wants to give up, that would depend on him. They say he would interrupt the market if he did,” Trump said.
- Wednesday’s Reuters report that stated that Trump received a positive response after consulting some Republican legislators about fire Powell led to a strong drop in the US dollar and in US shares markets.
- Meanwhile, the comments of a couple of Fed officials pointing to the disagreement of consumer inflation expectations have also strengthened the US dollar. The president of the Bank of the Federal Reserve of New York, John Williams, and the president of the Atlanta Fed Bank, Raphael Bostic, warned that the impact of tariffs on inflation has barely begun to accumulate, and will accelerate in the future.
- “It is early to evaluate the impact of tariffs on the economy, which is modest so far, but will increase over time,” said Bank of the Fed of New York, John Williams, in a speech in the New York Business Economy Association on Wednesday. He warned that tariffs should increase inflation in “a percentage point during the rest of 2025 to 2026”.
- Looking ahead, investors will focus on US retail sales data, a key indicator of consumer spending, for June, which will be published at 12:30 GMT. The consumer spending measure is expected to have grown 0.1% after a 0.9% drop in May.
Technical Analysis: The pound sterling quotes below 1,3400
The sterling pound falls about 1,3370 against the US dollar, the lowest level in almost two months. The short -term trend of the GBP/USD torque is bassist, since it lies below the exponential mobile socks (EMA) of 20 days and 50 days, which are around 1,3525 and 1,3470, respectively.
The 14 -day relative force (RSI) index ranges below 40.00, indicating a strong bearish impulse.
Looking down, the minimum of May 12, 1,3140 will act as a key support zone. On the positive side, the maximum of July 11 around 1,3585 will act as a key barrier.
LIBRA ESTERLINA – FREQUENTLY QUESTIONS
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.
