- Libra sterling shows strength before the key decisions of central banks this week.
- The BOE is expected to lower interest rates on Thursday, with market participants anticipating that the Central Bank will guide an acceleration in the flexibility of politics and lower GDP growth perspectives.
- The Fed will keep the stable interest rates on Wednesday almost certainly.
The sterling pound (GBP) jumps to about 1,3370 against the US dollar (USD) during the European negotiation hours on Tuesday. The GBP/USD pair is strengthened as the US dollar decreases, while investors expect the monetary policy decision of the Federal Reserve (Fed), which will be announced on Wednesday. The dollar (DXY) index, which tracks the value of the dollar against six main currencies, falls to about 99.50.
According to the CME Fedwatch tool, the Fed is almost sure of maintaining the interest rates of stable loans in the range of 4.25%-4.50%. This would be the third consecutive policy meeting in which the Central Bank would leave interest rates without changes. The operators have maintained a growing confidence that the Fed will maintain the status quo on Wednesday, since the officials have argued in favor of maintaining an approach of “waiting and seeing” due to the lack of clarity about the economic perspectives under the leadership of US President Trump.
What moves the market today: the pound sterling progresses in front of its peers
- The sterling pound is firmly negotiated against its main peers on Tuesday. The British currency wins before the decision on the interest rates of the Bank of England (BOE), which will be announced on Thursday, and in which the Central Bank is expected to reduce interest rates at 25 basic points (BPS) to 4.25%. This would be the fourth reduction of interest rates by the BOE in its current monetary policy expansion cycle, which began in August.
- Investors will pay special attention to the orientation of the BOE on monetary policy and economic perspectives before the highest tariffs imposed by US President Donald Trump in the so -called “Liberation Day” on April 2. At the March policy meeting, the BOE guided a gradual approach to reduce interest rates. However, BOE officials had not discounted the risk of commercial war at that time, what Governor Andrew Bailey emphasized that it should be done at the end of April.
- Market participants have predicted that the BOE could reverse their “gradual flexibility of politics” position and reduce growth forecasts. “We anticipate that the BOE will degrade its forecasts of Gross Domestic Product (GDP) due to the commercial war, and there is a risk that the BOE eliminates the reference to a cycle of ‘gradual’ cuts, said analysts of the Commonwealth Bank of Australia.
- Meanwhile, the operators anticipate that the BOE could make two more cuts of interest rates this year after Thursday’s policy meeting.
- In the American economy, market experts have warned that the implementation of new economic policies by President Trump will be negative for the economy, assuming that the highest tariffs could lead to a slower economic growth and a resurgence of consumer inflation. “In the heart of the problem is the risk of stagflation, triggered by increases in trade -related costs and interruptions in the supply chain,” according to a report by the Wall Street Journal (WSJ) by Nick Timiraos.
- On the contrary, the US Treasury Secretary, Scott Besunt, has expressed confidence that tariff policy will favor economic growth and help reduce the commercial deficit. “We believe that we can bring the growth back to 3% for this time next year, which will help reduce the federal deficit by perhaps 1% per year,” Besent said in an interview with CNBC Television on Monday.
- The US Treasury Secretary, Besent, has also ensured confidence that Washington can close several commercial agreements this week. “I am very sure that 17 commercial partners, excluding China, have presented very good commercial proposals, and we (the White House) are very close to some commercial agreements, maybe as soon as this week,” said Besent. Regarding the current state of commercial perspectives between the US and China, Besent said we could see “substantial progress in commerce with China in the coming weeks.”
LIBRA ESTERLINA PRICE TODAY
The lower table shows the percentage of pounding sterling (GBP) compared to the main currencies today. The sterling pound was the strongest currency against the Swiss Franco.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.15% | -0.54% | -0.49% | -0.07% | 0.12% | -0.25% | 0.29% | |
| EUR | 0.15% | -0.40% | -0.34% | 0.07% | 0.26% | -0.10% | 0.43% | |
| GBP | 0.54% | 0.40% | 0.04% | 0.48% | 0.69% | 0.30% | 0.86% | |
| JPY | 0.49% | 0.34% | -0.04% | 0.41% | 0.61% | 0.32% | 0.79% | |
| CAD | 0.07% | -0.07% | -0.48% | -0.41% | 0.19% | -0.18% | 0.37% | |
| Aud | -0.12% | -0.26% | -0.69% | -0.61% | -0.19% | -0.37% | 0.19% | |
| NZD | 0.25% | 0.10% | -0.30% | -0.32% | 0.18% | 0.37% | 0.56% | |
| CHF | -0.29% | -0.43% | -0.86% | -0.79% | -0.37% | -0.19% | -0.56% |
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).
Technical analysis: the pound sterling jumps above 1,3350
The sterling pound rises to about 1,3370 in front of the US dollar Tuesday. The pair strives to visit the maximum of three years of 1,3445. The general perspective remains bullish since all exponential mobile socks (EMA) short -term are uphill.
The 14 -day relative force (RSI) index struggles to return above 60.00. A new bullish impulse would be triggered if the RSI manages to do it.
On the positive side, the maximum of three years of 1,3445 will be a key obstacle to the torque. Looking down, the maximum of April 3 around 1,3200 will act as an important support area.
Economic indicator
Decision on the BOE interest rate
He Bank of England Announce your decision on the interest rate at the end of your eight meetings scheduled per year. If the BOE adopts a hard line posture on the inflationary perspectives of the economy and elevates interest rates, it is generally bullish for sterling pound (GBP). Similarly, if the BOE adopts a moderate vision of the United Kingdom economy and keeps interest rates without changes, or reduces them, it is considered bassist for the GBP.
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Next publication: MARD MAY 08, 2025 11:00
Frequency: Irregular
Dear: 4.25%
Previous: 4.5%
Fountain: Bank of England
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.
