- GBP/USD kept fixed after a 1.3600 handle loss.
- The main employment data in the United Kingdom and the US inflation numbers from Q2 on the offer in the coming days.
- GBP/USD still tends to climb firmly, but a roof may be priced in the short term.
GBP/USD held constantly in the last monotheism on Monday, and water test near 1.3550. Cable traders regain a single punch of data in the United Kingdom and the United States during Tuesday and Wednesday, and the main trade headlines continue on the horizon due to market morale, which increases momentum with investors in overcoming wide tariff tensions in the United States with China.
Trade conversations are taking place in London this week between the Trump administration and the China government. Investors hope that the United States and China will meet in the center enough to persuade the Trump administration to stop the contract of its voters as economic hostages with highly declining import and commercial restrictions of technology.
On Tuesday, it will launch matters on the midfield of the week with an update of employment and profits in the United Kingdom. The average basic profit growth is expected to cool to 5.4 % during the quarter ending in April, while a leap is also expected to change the number of demands. The number of new unemployment seekers is expected to rise to 9.5 thousand in May.
On the American side, the Consumer Prices Index (CPI) is scheduled for Wednesday. An inflation numbers in the United States are expected to rise in the United States, where inflation data leaks after fire through the second -quarter data set, which may raise a problem for investors who hope for price discounts from the Federal Reserve (Fed) this year. The main inflation in CPI is expected to reach 2.5 % year on an annual basis in May.
GBP/USD price expectations
GBP/USD has been returned from its highest level in many years, but cable shows remain close to the surface. The couple retains the near -term crowding in the near -north of 1.3500, and the husband still tends to climb firmly with prices much higher than the 200 -day SIA moving average (EMA) near 1.2960.
GBP/USD
Stering questions and answers to the pound
The British pound (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most trading for foreign unit (FX) in the world, as it represents 12 % of all transactions, with an average of 630 billion dollars per day, according to 2022 data. Their main trading pairs are GBP/USD, also known as “Cable”, which represents 11 % of FX, GBP/JPY, or “dragon” as it is known by merchants (3 %), and, and EUR/GBP (2 %). The pound was released by the Bank of England (Bank of England).
The only most important factor that affects the value of the British pound is the monetary policy decided by the Bank of England. The Bank of England is based on its decisions on whether it has achieved its primary goal of “stability in prices” – a fixed inflation rate of about 2 %. Its primary performance to achieve this is to adjust interest rates. When inflation is very high, the Bank of England will try to make interest by raising interest rates, making it more expensive for people and companies to reach credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to stop their money. When inflation decreases significantly, economic growth slows down. In this scenario, the Bank of England will consider reducing interest rates to licensing credit so that companies borrow more to invest in growth generation projects.
Data affects the health of the economy and can affect the value of the pound sterling. Indicators such as gross domestic product, manufacturing, services, and employment can affect the GBP direction. The strong economy is useful for sterling. Not only attracts more foreign investments, but it may encourage the Bank of England to set interest rates, which will enhance the GBP directly. Otherwise, if the economic data is weak, it is possible that the pound sterling will fall.
Issuing another important data for the British pound is the balance of trade. This indicator measures the difference between what a country gains from its exports and what it spends on imports during a certain period. If a country produces very desirable exports, its currency will benefit from the additional demand resulting from foreign buyers who seek to buy these goods. Therefore, the positive and positive trade balance enhances the currency and vice versa to achieve a negative balance.
