- The sterling pound is still ready to earn a weekly more than 0.80 % amid wide twice the week.
- The US economy added 139 kilos in May, overcoming predictions and strengthening FED’s caution over price cuts.
- The appearance of the strength of the dollar, with DXY climbing 0.58 % to 99.28, which is the highest level in two days.
GBP/USD decreased during the North American session, where more than 0.30 % decreased after the recent job report in the United States (United States) maintained the current situation, while the economy remains strong. The pair was traded at 1.3526 after reaching the highest daily level of 1.3586.
The pound has declined lower
The numbers of non -agricultural salary lists in the United States have exceeded 130,000 estimates, which rise by 139 thousand, which were less than 147 km from April. Although the job market shows that it is softened, it overcomes the estimates of economists, it has paid aside the stakes of merchants that the Federal Federal Reserve (Fed) will reduce interest rates in 2025.
The data revealed that the unemployment rate remained unchanged at 4.2 %, and that the federal government reduced 10,000 jobs last month.
The rare economic measures in the United Kingdom have kept the GBP/USD traders tending to United States news. In addition, the British pound is preparing to spread gains more than 0.80 % a week, sponsored by the wide dollar for the financial year.
Nevertheless, Pak recovered some land, as shown in the US dollar index (DXY). DXY, which tracks the value of the US dollar against a basket of six currencies, increased by 0.58 % to 99.28, its highest level in two days.
Next week, the UK’s economy DOCICET will display job data and total local products numbers (GDP) for April. Through the blessing, the American schedule will announce the latest consumer price index (CPI), followed by the product price index (PPI) and consumer morale at the University of Michigan.
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 Japanese yen.
| US dollar | euro | GBP | JPY | CAD | Aud | Nzd | Chf | |
|---|---|---|---|---|---|---|---|---|
| US dollar | -0.32 % | -0.40 % | 0.75 % | -0.35 % | -0.75 % | -0.76 % | 0.08 % | |
| euro | 0.32 % | -08 % | 1.07 % | -0.03 % | -0.43 % | -0.46 % | 0.39 % | |
| GBP | 0.40 % | 0.08 % | 1.22 % | 0.05 % | -0.35 % | -0.38 % | 0.46 % | |
| JPY | -0.75 % | -1.07 % | -1.22 % | -1.09 % | -1.49 % | -1.51 % | -0.76 % | |
| CAD | 0.35 % | 0.03 % | -05 % | 1.09 % | -0.40 % | -0.43 % | 0.42 % | |
| Aud | 0.75 % | 0.43 % | 0.35 % | 1.49 % | 0.40 % | 0.02 % | 0.90 % | |
| Nzd | 0.76 % | 0.46 % | 0.38 % | 1.51 % | 0.43 % | -02 % | 0.85 % | |
| Chf | -08 % | -0.39 % | -0.46 % | 0.76 % | -0.42 % | -0.90 % | -0.85 % |
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).
GBP/USD price expectations: Technical expectations
The trend remains higher, as the GBP/USD buyer tested the simple 20 -day moving medium (SMA) at 1.3509. If this level continues, it is possible that the pair’s direction in the short term after conducting a successive chain of the highest levels and upper declines, calls for more upward trend.
However, the momentum has succeeded. The RSI (RSI) index aims to decrease, hints that sellers are moving.
If the GBP/USD remains above 1.3500, this opens the door to move to 1.3584 today, followed by a year height (YTD) at 1.3616. On the other hand, a daily closure can be less than 1.35 care for a decrease of about 28 Sing High April in April at 1.3443 1.34 marks.
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.
