- GBP/USD increased by another 0.75 % on Monday, climbing for a week in a row.
- Steling against Greenback is preparing to operate against UK’s main data this week.
- UK work numbers are scheduled to be on Tuesday, followed by CPI inflation data in the United Kingdom on Wednesday.
GBP/USD rose three quarters of one percent on Monday, climbing a fifth consecutive trading session as the pound continued to restore the land against green softening. Although GBP runs the plans against the US dollar, the challenges are still waiting for the main economic data on the release schedule for this week.
Employment data in the United Kingdom will be published early during the London market session on Tuesday. The unemployment rate is expected to be the International Labor Organization for a period of 3 months ending in February is fixed at 4.4 %, and it is expected that the change in the number of claims in March to 30.3 thousand February will reduce 44.2 km.
The inflation numbers will be deployed at the UK Consumer Index (CPI) on Wednesday. The main CPI infection in the UK is expected to decrease to 2.7 % on an annual basis of the previous period by 2.8 %, while the basic CPI enlargement is expected to remain stubborn at 3.5 % on an annual basis.
GBP/USD price expectations
GBP/USD tests its multiple levels near the 1.3200 handle after height for a week in a row. The cable increased by 3.88 % from the bottom up after the last oscillation to the 200 -day SIA moving average (EMA) near 1.2700.
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.
