- The sterling pound is corrected at 1,3550 against the US dollar amid the uncertainty about the economic perspectives of the USA.
- The member of the Fed, Kashkari, warns about the risks of stagning under the leadership of US President Trump.
- Operators reduce moderate bets of the BOE to a series of positive economic data from the United Kingdom.
The sterling pound (GBP) is corrected to about 1,3550 against the US dollar (USD) in the European session on Tuesday from the maximum of three years around 1,3600 registered the previous day. The GBP/USD torque falls as the US dollar recovers, while the prospects of the US dollar remain fragile, since investors fight to predict how the bilateral agreements of the United States (USA) with their commercial partners will shape their economic perspectives.
At the time of writing, The US dollar index (DXY), which tracks the value of the dollar against six main currencies, jumps to about 99.35 after attracting offers near the monthly minimum of 98.70.
Federal Reserve officials (FED) have predicted that the new economic policies of US President Donald Trump will cause risks of stagning in the economy, and any adjustment in monetary policy would be inappropriate until the magnitude of the increase in inflation and weakness in economic growth can be anticipated.
During European negotiation hours, the president of the Federal Reserve of Minneapolis, Neel Kashkari, said: “Until there is more clarity on the path of tariffs, its impact on prices and economic activity, it will support to keep stable interest rates“Kashkari also warned about the high uncertainty due to the repercussions of tariffs by Washington.”Uncertainty is something that is in the mind of the FED and US companies, and we are trying to navigate where inflation and labor market are going,“Kashkari said. He said:” There is no doubt that the impact of tariffs is stagging. “
Another reason behind the weakness of the US dollar is the uncertainty about Washington’s commercial discussions with Japan, China and the European Union (EU). During the weekend, US President Trump extended the deadline for 50% tariffs on the EU until July 9 from June 1, after the president of the European Commission, Ursula von der Leyen, ensure that the continent will quickly advance in commercial negotiations and requested some time to reach a good agreement.
In the economic field, investors expect the data of orders for the US durable goods for April, which will be published at 12:30 GMT. It is expected that the cost of new requests for durable goods has decreased by 7.9% after a robust increase of 9.2% in March.
What moves the market today: the pound sterling lies upwards in front of most of its peers
- The sterling pound reflects some strength against most of its main peers on Tuesday, except against the US dollar, since the operators feel increasingly confident that the monetary expansion cycle of the Bank of England (BOE) will be more moderate than the central bank guided in its policy announcement earlier this month.
- According to a Reuters report, the futures market shows that operators see the interest rates of loans falling into around 38 basic points (BPS) by the end of this year, indicating a cut of interest rates of 25 bps and approximately 50% probabilities of a second cut.
- The main factors behind the increase in the confidence of the operators towards a moderation posture in politics are the robust growth of the Gross Domestic Product (GDP) of the United Kingdom in the first quarter, the most hot consumer price index (CPI) than projected and the optimistic data of retail sales for April.
- This month, the Office of National Statistics (ONS) reported that the economy grew at a robust rate of 0.7% in the first quarter of the year, the general CPI accelerated at a faster rate of 3.5% year -on -year, and retail sales expanded strongly in 1.2% intermensual.
- At the policy meeting earlier this month, the BOE reduced the interest rates of loans in 25 BPS at 4.25% with a 7-2 vote and guided an approach to “gradual and careful” interest rate cuts. The chief economist of the BOE, Huw Pill, was one of the two responsible for the policy that voted to maintain interest rates at their current levels. Pill expressed confidence in a speech in Barclays in London last week that the “underlying process of disinflation remains intact.” His vote in favor of maintaining stable interest rates was to indicate that the Central Bank needs to be cautious with rates cuts. “The quarterly rhythm of 25 BPS cuts seen since last summer is too fast given the inflationary panorama,” Pill said and added, “The rhythm of the quarterly cuts is too fast given the risk balance for the price stability we face.
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 Japanese and in Japanese.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.28% | 0.12% | 0.71% | 0.17% | 0.60% | 0.72% | 0.60% | |
| EUR | -0.28% | -0.18% | 0.39% | -0.11% | 0.24% | 0.35% | 0.29% | |
| GBP | -0.12% | 0.18% | 0.60% | 0.07% | 0.38% | 0.52% | 0.43% | |
| JPY | -0.71% | -0.39% | -0.60% | -0.50% | -0.10% | -0.05% | -0.10% | |
| CAD | -0.17% | 0.11% | -0.07% | 0.50% | 0.40% | 0.46% | 0.38% | |
| Aud | -0.60% | -0.24% | -0.38% | 0.10% | -0.40% | 0.02% | -0.06% | |
| NZD | -0.72% | -0.35% | -0.52% | 0.05% | -0.46% | -0.02% | -0.12% | |
| CHF | -0.60% | -0.29% | -0.43% | 0.10% | -0.38% | 0.06% | 0.12% |
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 sterling pound remains above all long -term short -term EMAS
The sterling pound is corrected at 1,3550 against the US dollar on Tuesday after reaching a new three years the previous day. The short -term trend of GBP/USD It remains bullish since all exponential mobile socks (EMAS) in the short term are inclined to rise.
The 14 -day relative force (RSI) index rises to about 70.00, indicating a strong bullish impulse.
On the positive side, the maximum of January 13, 2022 of 1,3750 will be a key obstacle to the pair. Looking down, the maximum of April 28, 1,3445 will act as an important support area.
Economic indicator
Consumer Price Index (Yoy)
The IPC publishes it National Statistics and measures prices a basket of goods and services bought by households for consumption. The CPI is the main indicator to measure inflation and changes in consumption trends. A greater result than expectations is bullish for the pound, while a minor reading is bassist.
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Last publication:
MIÉ MAY 21, 2025 06:00
Frequency:
Monthly
Current:
3.5%
Dear:
3.3%
Previous:
2.6%
Fountain:
Office for National Statistics
The Bank of England has the task of maintaining inflation, measured by the main consumer price index (CPI), in about 2%, which gives the monthly publication its importance. An increase in inflation implies an increasingly fast increase in interest rates or the reduction of bond purchase by the BOE, which means squeezing the offer of pounds. On the contrary, a drop in the rhythm of price increases indicates a more flexible monetary policy. A higher result than expected tends to be bullish for the GBP.
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.
