GBP/USD rises with estimates of GDP victory in the United Kingdom, American inflation remains hot
- UK gross domestic product is 0.1 % growth, challenging stagnation fears.
- Inflation in the US producers’ price index exceeds expectations, which enhances FED position caution against price cuts.
- GBP/USD carries gains, but the technical view still prefers the downside less than 1.2473.
The British pound recorded solid gains against Greenback on Thursday after the US GDP numbers won amazing estimates. Meanwhile, inflation in the United States is a rose, and US job data shows that the labor market is still strong. GBP/USD is trading at 1.2510, an increase of 0.53 %.
The gains of the pound, but the Boy Bank and the feeding of the potential upward trend capsules
The data showed the British pound after the initial reading Q4 2024 that the economy grew by 0.1 % of QOQ, exceeding the estimates of contraction -0.1 %. On an annual basis, gross domestic product increased by 1.5 %, which is higher than the previous 1 % prediction and reading.
In the United States, the American Labor Statistics Office (BLS) revealed that the PPI price index came 0.4 % of MOM in January, above 0.3 % estimates, a decrease from 0.5 %. In annual data (YOY), the producers’ price index remained unchanged by 3.5 % but exceeded predictions.
The basic numbers also came somewhat hot, as the monthly numbers increased by 0.3 %, at the estimate. In the twelve months to January, the basic product price index increased by 3.6 %, or three tenths higher than the 3.3 % projection.
Other data showed that the initial unemployed claims for the week ended February 8 increased by 213 kilos, below 215K estimates, and February 1 read 220 kg.
Looking at the background, GBP/USD is traded in green, although the difference between central banks prefer the downside. After the GDP data in the United Kingdom, the markets were fully priced in the next reduction in June and expected 55 basis points of mitigation by Bank of England (Bank of Boy) at the end of 2025.
However, the Senior Economists at the Bank of England Hui Bells said he expected more price cuts but urges caution because the inflation was not completed.
Meanwhile, the Federal Reserve adopted a cautious position after the latest inflation readings indicated that the inflation stopped after five consecutive months of prices. On Wednesday, Federal Reserve Chairman Jerome Powell said, “We are close but there is no inflation,” adding: “We want to continue to restrict politics at the present time.”
GBP/USD price expectations: Technical expectations
GBP/USD is still as shown in the daily chart. But if buyers regain the highest level on February 5 of 1.2549, the bias moves to a neutral as the husband achieved a higher rise, which is an indication of the transformation of the direction. The additional upward trend lies at 1.2600, and the SMA SMA may challenge at 1.2700.
On the contrary, if the GBP/USD decreases to less than SMA for 50 days at 1.2473, sellers can pay prices towards a sign 1.2400.
British pound price today
The table below shows the percentage of change in the British pound (GBP) against the main currencies listed today. The British pound was the strongest against the US dollar.
| US dollar | euro | GBP | JPY | CAD | Aud | Nzd | Chf | |
|---|---|---|---|---|---|---|---|---|
| US dollar | -0.39 % | -53 % | -0.54 % | -0.41 % | -07 % | -08 % | -0.75 % | |
| euro | 0.39 % | -0.15 % | -0.13 % | -02 % | 0.30 % | 0.30 % | -37 % | |
| GBP | 0.53 % | 0.15 % | -02 % | 0.12 % | 0.46 % | 0.44 % | -0.23 % | |
| JPY | 0.54 % | 0.13 % | 0.02 % | 0.12 % | 0.46 % | 0.40 % | -0.23 % | |
| CAD | 0.41 % | 0.02 % | -0.12 % | -0.12 % | 0.35 % | 0.32 % | -0.35 % | |
| Aud | 0.07 % | -0.30 % | -0.46 % | -0.46 % | -0.35 % | -02 % | -69 % | |
| Nzd | 0.08 % | -0.30 % | -0.44 % | -0.40 % | -0.32 % | 0.02 % | -67 % | |
| Chf | 0.75 % | 0.37 % | 0.23 % | 0.23 % | 0.35 % | 0.69 % | 0.67 % |
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).
