GBP/USD slides with fears of the trading war, weighing uncertainty in the central bank
- GBP/USD decreases from the highest daily level of 1.2969 amid the mood of the US dollar continuous.
- Understanding in science, both of which indicate Trump’s tariff as a risk to global growth and inflation expectations.
- Traders will look forward to the main inflation data next week, as CPI in the UK and PCE in the United States will reduce price rates.
The pound (GBP) is about 0.29 % against the US dollar (USD) on Friday, is scheduled to end the week unchanged after the main central banks have emerged monetary policy decisions led by Federal Reserve (Fed) and England Bank (BOE). At the time of this report, GBP/USD is traded at 1.2931 after reaching a daily peak of 1.2969.
The sterling pound is 0.29 %, and the week is scheduled to end a flat week after the federal reserve tone and BOE
The market mood is still dirty, as shown in the United States (the United States) shares that spread losses, while Greenback is still giving. On Thursday, the Bank of England maintained rates unchanged and said that there is uncertainty about the future, echoing the words of the Federal Reserve Jerome Powell. Each of the political makers mentioned US President Donald Trump’s tariff against its partners as a reason.
“There is a general feeling of caution. We don’t really know what the effects of the trade war on growth and inflation,” said Kenneth Brooks, head of companies in Societe Genereale.
On April 2, traders were going on as a decisive date for the purchase of mutual definitions in the United States. Most analysts estimate that the trade war may stimulate the slowdown in the global economy.
The lack of economic data and the beginning of the federal reserve offer leaves traders who tend to policymakers. John Williams in New York said the goal of inflation, which is 2 % of the Federal Reserve, is not a discussion, adding that the current humble monetary policy is “perfectly appropriate”, and it is difficult to know how to perform the economy.
The federal bank in Chicago, Austan Golsby, said that when there is a lot of uncertainty, you should wait for things to be clarified.
Next week, the UK’s economy DOCICET will showcase the Consumer Prices Index (CPI) and the Spring Budget statement. Through the pond, the preferred inflation scale will also be appointed by the Federal Reserve, and the basic personal consumption expenses index (PCE).
GBP/USD price expectations: Technical expectations
The GBP/USD pair was appointed to finish the week almost flat, however steadily advanced since climbing over the 1.2900 handle. However, the couple printed two declining days, reaching its lowest level for four days at 1.2927.
In the short term, the momentum prefers sellers, as shown in the RSI Index (RSI), which aims to decrease despite being in the upward lands. This opens the door to withdraw, and traders can pull GBP/USD to challenge a decrease in March 10 at 1.2861. If it is exceeded, the next station is the 200 -day SMA at 1.2797. On the other hand, if buyers exceed the exchange rate after 1.3000, the following resistance will be the peak of November 6 at 1.3047.
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 Australian dollar.
| US dollar | euro | GBP | JPY | CAD | Aud | Nzd | Chf | |
|---|---|---|---|---|---|---|---|---|
| US dollar | 0.48 % | 0.06 % | 0.03 % | -0.23 % | 0.95 % | 0.14 % | -0.25 % | |
| euro | -0.48 % | -53 % | -0.85 % | -0.70 % | 0.32 % | -0.35 % | -0.75 % | |
| GBP | -06 % | 0.53 % | 0.02 % | -0.38 % | 0.85 % | 0.17 % | -0.28 % | |
| JPY | -0.03 % | 0.85 % | -02 % | -0.25 % | 0.71 % | 0.16 % | -0.40 % | |
| CAD | 0.23 % | 0.70 % | 0.38 % | 0.25 % | 0.97 % | 0.37 % | -56 % | |
| Aud | -0.95 % | -0.32 % | -0.85 % | -0.71 % | -0.97 % | -65 % | -1.06 % | |
| Nzd | -0.14 % | 0.35 % | -0.17 % | -16 % | -37 % | 0.65 % | -0.40 % | |
| Chf | 0.25 % | 0.75 % | 0.28 % | 0.40 % | 0.56 % | 1.06 % | 0.40 % |
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).
