- The sterling pound remains alert while investors expect the policy of the Fed-BOE and the United Kingdom employment data.
- American officials, including President Donald Trump, expect economic turbulence for new policies.
- The United Kingdom’s economy contracted 0.1% and industry data fell significantly in January.
The sterling pound (GBP) is negotiated with caution in front of its main peers in the negotiation hours of North America on Monday. The British currency is expected to remain in embers, with investors focused on the BOE monetary policy announcement on Thursday. The operators are confident that the BOE will maintain the stable interest rates, since a series of officials have guided an “gradual and cautious” feeding approach.
Investors will pay special attention to the monetary policy declaration and the press conference of the Governor of the BOE, Andrew Bailey, after the decision on interest rates to obtain clues about the economic and monetary policy perspectives.
An economic contraction in the Gross Domestic Product (GDP) of the United Kingdom and a strong drop in industrial and manufacturing production data for January have generated concerns about economic perspectives. The BOE also reduced its 0.75% GDP growth prognosis at the February policy meeting.
This week, investors will also focus on the United Kingdom labor market data for the three months that ended in January, which will also be published on Thursday. Investors will focus on the average profit data, a key measure of salary growth that is an important inflation engine in the services sector.
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 | -0.21% | -0.27% | 0.04% | -0.29% | -0.24% | -0.71% | -0.30% | |
| EUR | 0.21% | -0.18% | -0.15% | -0.08% | -0.17% | -0.51% | -0.11% | |
| GBP | 0.27% | 0.18% | 0.35% | -0.12% | -0.01% | -0.35% | -0.01% | |
| JPY | -0.04% | 0.15% | -0.35% | -0.34% | -0.50% | -0.71% | -0.48% | |
| CAD | 0.29% | 0.08% | 0.12% | 0.34% | -0.15% | -0.42% | -0.55% | |
| Aud | 0.24% | 0.17% | 0.00% | 0.50% | 0.15% | -0.32% | 0.06% | |
| NZD | 0.71% | 0.51% | 0.35% | 0.71% | 0.42% | 0.32% | 0.40% | |
| CHF | 0.30% | 0.11% | 0.00% | 0.48% | 0.55% | -0.06% | -0.40% |
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).
What moves the market today: the sterling pound rises to the start of the Fed-Boe monetary policy week
- The pound sterling jumps to about 1,2970 against the US dollar (USD) at the beginning of the week. The GBP/USD torque rises while the US dollar index, which tracks the value of the dollar against six main currencies, fell to about 103.50. The USD index weakens while investors expect the monetary policy decision of the Federal Reserve (FED) and the Bank of England (BOE), which will be announced on Wednesday and Thursday, respectively. It is expected that both the Fed and the BOE will maintain the stable interest rates.
- According to the CME Fedwatch tool, the Fed is almost sure of maintaining stable loan interest rates in the range of 4.25%-4.50%. This would be the second consecutive policy meeting in which the Central Bank will 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 been arguing in favor of maintaining an approach of “waiting and seeing” in the midst of uncertainty about the economic perspectives under the leadership of US President Donald Trump.
- Market participants expect President Trump’s economic policies to boost upward inflation and weigh on short -term growth prospects. The March Preliminary Survey of the University of Michigan (UOM) on consumers showed on Friday that respondents see the expectations of consumer inflation to five years in 3.9%, above 3.5% projected in February. The preliminary Michigan consumer’s feeling index was significantly lower in 57.9 in March compared to estimates of 63.1 and the previous reading of 64.7.
- A series of American officials, such as President Trump, Trade Secretary Howard Lutnick and Treasury Secretary Scott Besent, have indicated that Trump’s policies could lead to economic turbulence, but the transition will make America great again. Besent said in an interview with NBC News on Sunday: “I can predict that we are implementing robust policies that will be lasting, and there could be an adjustment,” adding that the country needed to get rid of “mass governmental expenses.” His comments occurred after the interviewer asked if Trump’s agenda could lead the economy to a recession.
Technical analysis: The sterling pound maintains the key support of 1,2950
The sterling pound moves up and seeks to recover the psychological level of 1.3000 against the US dollar in the European session on Monday. The long -term perspective of the GBP/USD torque remains bullish since it remains above the 200 -day exponential (EMA) mobile average, which is around 1,2700.
The 14 -day relative force (RSI) index remains above 60.00, indicating that the strong bullish impulse is intact.
Looking down, the fibonacci setback of 50% in 1,2775 and the 38.2% setback in 1,2618 will act as key support areas for the torque. On the positive side, the maximum of October 15, 1,3100 will act as a key resistance zone.
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.
