- UOM’s feeling decreased to 50.8, lower since July 2022; Inflation expectations rise sharply.
- US housing data is mixed, import rates rise unexpectedly; Powell, Jefferson, beware of early dilution.
- UK data is invalid leaving the pound sterling. Merchants are waiting for the main inflation in the United Kingdom, the director of PIS, and the retail sales next week.
The pound falls against the US dollar during the North American session, and is preparing to end the week with the least losses of more than 0.24 %. The absent economic measures in the United Kingdom left on Friday that the traders were roaming in American data, which revealed that consumers had become pessimistic about the economy. GBP/USD is trading at 1.3276, a decrease of 0.39 %
GBP/USD Waves is preparing to end the week negatively, despite the data of the American Consumer
Recently, the University of Michigan revealed that the consumer feelings index in May fell to its lowest level since July 2022, at 50.8, less than expectations to improve to 53.8, decreasing from 52.2 April. The poll also showed that inflation expectations for the next year increased from 6.5 % to 7.3 %, and the next five years have jumped from 4.4 % to 4.6 %.
Other US data showed that import prices were unexpectedly increased in April, due to the increase in the cost of capitalism and the weakest US dollar. American housing data was mixed with a height of housing in April, while construction permits fell to the lowest level in almost two years.
GBP/USD was delayed in responding to American data, but it was drifted to less than 1.33. On Thursday, Federal Reserve Chairman Jerome Powell revealed that “certain aspects of the Federal Reserve approach are permanent, such as focusing on inflation expectations.”
So far, the US economic data that was released during the week has shown an evolution in the inflation process. However, federal reserve officials have been reluctant to reduce policy because they remained not sure of the American trade policies, definitions and their effects on inflation. Federal Reserve Governor Jefferson confirmed that the re -inflation sequence may be temporary or continuous.
On the growth front, retail sales continued to slow down in April. However, the latest update of the GDP in Atlanta Virus now indicates that the American economy can grow at a rate of 2.4 %, down from 2.5 % last day.
Next week, the UK’s economic DOCICET will show the UK meeting in addition to issuing inflation numbers in the United Kingdom, the director of purchasing managers, and retail sales. In the United States, a group of FBI amplifiers, project managers control, and housing data will be diversified.
GBP/USD price scheme: technical expectations
GBP/USD decreased to less than 1.33, and it may close the week below the last. This way can pave the way for a retreat, although sellers should remove the lowest daily level on May 15 at 1.3248, so that they can challenge the simple moving average for 50 days (SMA) at 1.3112. On more weakness, the next support will be a 1.3000 sign.
On the contrary, if the GBP/USD is over 1.33, buyers can test 1.3350. It can show a clear break at this level (YTD) throughout the year at 1.3443.
British pound price this week
The table below shows the percentage of change in the British pound (GBP) against the main currencies listed this week. The British pound was the strongest against the New Zealand dollar.
| US dollar | euro | GBP | JPY | CAD | Aud | Nzd | Chf | |
|---|---|---|---|---|---|---|---|---|
| US dollar | 0.89 % | 0.34 % | -0.19 % | 0.63 % | 0.35 % | 0.90 % | 0.58 % | |
| euro | -0.89 % | -0.41 % | -0.50 % | 0.24 % | 0.10 % | 0.49 % | 0.17 % | |
| GBP | -0.34 % | 0.41 % | 0.08 % | 0.65 % | 0.52 % | 0.84 % | 0.59 % | |
| JPY | 0.19 % | 0.50 % | -08 % | 0.82 % | -0.09 % | 0.23 % | 0.54 % | |
| CAD | -63 % | -0.24 % | -65 % | -0.82 % | -02 % | 0.26 % | -07 % | |
| Aud | -0.35 % | -0.10 % | -52 % | 0.09 % | 0.02 % | 0.29 % | 0.05 % | |
| Nzd | -0.90 % | -0.49 % | -0.84 % | -0.23 % | -26 % | -0.29 % | -0.35 % | |
| Chf | -58 % | -0.17 % | -59 % | -0.54 % | 0.07 % | -05 % | 0.35 % |
The heat map shows the percentage changes in the main currencies against each other. The basic currency is chosen from the left column, while the quotation currency is chosen from the top row. For example, if you choose the British pound from the left column and move along the horizontal line to the US dollar, the percentage offered in the box will represent the GBP (Base)/USD (quotation).
