- The sterling pound slides slightly below 1,3600 against the US dollar while the markets focus on any commercial agreement before the deadline of July 9 for US tariffs.
- Trump prepares to send letters to those nations that have failed to sign a commercial pact, specifying tariff rates.
- The increase in welfare spending in the United Kingdom will require an increase in taxes or cuts in spending in the future.
The sterling pound (GBP) falls about 1,3600 against the US dollar (USD) during the European negotiation hours on Monday. The GBP/USD torque decreases while the US dollar operates calmly, with investors waiting for holders related to trade in the regressive account for the deadline of United States tariffs (USA) on July 9.
He US dollar index (DXY), which tracks the value of the dollar against six main currencies, operates 0.35% higher than 97.35.
The US Treasury Secretary, Scott Besent, expressed confidence in an interview with CNN during the weekend that Washington will announce several agreements in a couple of days, New York Times reported. “There is a lot of delay from the other side, so I would expect to see several major ads in the coming days,” said Mr. Besent. “We will be very busy in the next 72 hours,” he added.
Until now, Washington has announced bilateral agreements with the United Kingdom (United Kingdom) and Vietnam and a limited commercial pact with China. On July 2, the US expressed confidence that he would close an agreement with India in 48 hours, but such agreement has not yet been confirmed.
Meanwhile, investors must prepare for volatility, since the US is prepared to send letters to those nations that have not signed an agreement with Washington during the extension of 90 -day tariffs.
During the weekend, Trump said that the first lot of letters that describe the tariff levels they would face in their exports to the United States would be sent to 12 countries on Monday, Reuters reported.
American dollar today
The lower table shows the percentage of US dollar change (USD) compared to the main coins today. US dollar was the strongest currency against the New Zealand dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.39% | 0.47% | 0.74% | 0.57% | 0.93% | 1.03% | 0.43% | |
| EUR | -0.39% | 0.08% | 0.10% | 0.16% | 0.61% | 0.62% | 0.02% | |
| GBP | -0.47% | -0.08% | -0.02% | 0.10% | 0.53% | 0.55% | -0.18% | |
| JPY | -0.74% | -0.10% | 0.02% | 0.07% | 0.42% | 0.52% | -0.24% | |
| CAD | -0.57% | -0.16% | -0.10% | -0.07% | 0.37% | 0.46% | -0.28% | |
| Aud | -0.93% | -0.61% | -0.53% | -0.42% | -0.37% | 0.12% | -0.70% | |
| NZD | -1.03% | -0.62% | -0.55% | -0.52% | -0.46% | -0.12% | -0.73% | |
| CHF | -0.43% | -0.02% | 0.18% | 0.24% | 0.28% | 0.70% | 0.73% |
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 US dollar of the left column and move along the horizontal line to the Japanese yen, the percentage change shown in the box will represent the USD (base)/JPY (quotation).
What moves the market today: the subperform sterling pound as tax risks increase in the United Kingdom
- The pound sterling quotes down against its main peers, except antipodeans, at the beginning of the week. The British currency remains under pressure due to the new escalation of fiscal risks in the United Kingdom. The increase in welfare spending by the Administration has raised the probability of a tax increase advertisement in the autumn budget.
- Last week, the Treasury Chancellor of the United Kingdom, Rachel Reeves, broke her own fiscal rules and increased the standard allocation to universal credit, a movement that is expected to accelerate the financial burden by 4.8 billion pounds for fiscal year 2029-2030.
- According to a Barclays report, the United Kingdom administration will probably need tax increases in the fall budget in the face of the growing fiscal challenges.
- On Thursday, Foreign Minister Reeves said in an interview with the BBC that the Administration will have to assume the cost of increase in well -being. However, he did not clarify whether the government will increase taxes or cut expenses. “Of course, there is a cost for the changes in the well -being that Parliament approved this week and that will be reflected in the budget,” Reeves said.
- In the economic field, the monthly data of the Gross Domestic Product (GDP) and the industry for May, which will be published on Friday, will be key trigger for sterling pound.
- Before that, the Vice Governor of the Bank of England (BOE) for financial stability, Sarah Breeden, is scheduled to speak in the Series of Annual Conferences Chapman-Barrigan on Thursday. However, it is unlikely to talk about monetary policy perspectives and inflation.
- The next announcement of the BOE monetary policy is August 7, with the markets waiting for another interest rate cut of 25 basic points to 4%, according to Deutsche Bank analysts. The bank also hopes that the BOE will make two more cuts of interest rates in November and December.
Technical analysis: The sterling pound struggles to maintain the 20 -day Ema
The Pound sterling It falls near the round level of 1,3600 against the US dollar on Monday, which coincides with the 20 -day exponential (EMA) mobile average.
The 14 -day RSI falls about 50.00, suggesting that the bullish impulse has vanished.
Looking down, the psychological level of 1,3500 will act as a key support zone. On the positive side, the maximum of three and a half years around 1,3800 will act as a key barrier.
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.
