Pound sterling set for the fourth in a row positive monthly in relation to the American dollar

The pound of sterling slightly drops to almost 1.3475 in relation to the American dollar, when the green reflects slightly.
The Federal US Court of Appeal will temporarily suspend the court decision of a lower instance against Trump tariffs.
Investors are waiting for the US inflationary data in April.

The pound of sterling (GBP) drops to almost 1.3475 in relation to the American dollar (USD) during the Friday European trading session. However, it is expected that the GBP/USD pair will be closed May with positive attention in the fourth month in a row.

Market expectations regarding the moderate cycle of politics expansion by Bank of England (Boe) and closing of commercial contracts with Washington, Delhi and Brussels have helped strengthen the British currency. While the American dollar has a pressure -friendly due to the president’s tariff uncertainty (USA) Donald Trump.

According to the Reuters report, the Futures contract market indicates that traders expect that loans will fall by about 38 base points (BPS) by the end of this year, which suggests one reduction of interest by 25 BPS and about 50% chances for a second.

On Thursday, Boe Governor Andrew Bailey led a “gradual and cautious approach” in lowering interest rates, citing that the economy is “difficult to read”. Bailey warned against “strengthening inflation in food and other product categories.” On the employment front, Bailey said that the data of the British labor market is almost “according to our expectations” and “the trend of wage growth is still intact“.

The main triggers standing behind traders evaporating Boe Dovish factories are solid economic growth in the first quarter and inflation of the heated than permeable.

The International Monetary Fund (IMF) slightly raised the GDP growth forecast in Great Britain for the current year to 1.2% in relation to previous estimates at 1.1%. The up version came from the positive data of the gross domestic product Q1 (GDP), which showed that the economy expanded at a solid pace by 0.7% compared to 0.1% observed in the last quarter of 2024.

Daily Digest Market Movers: Pound Sterling ticks lower in relation to the American dollar

The Sterling pound faces a slight sales pressure to the American dollar after the Federal Court of United States (USA) temporarily detained the decision of the Federal Shopping Court to block most of the US President Donald Trump’s tariffs. This movement will hurt market sentiments because of the renewed fears related to how the impact of trade war between the USA and its main trading partners may reach growth.
The American dollar index (DXY), which follows the Greenback value compared to the six main currencies, is marked to almost 99.50.
On Wednesday, the American commercial court ordered a constant order of tariffs related to carelessness of reciprocity, fentanyl and borders in 10 calendar days for abuse of the International Act on emergency right in 1977 (IEEPA). The Tribunal accused Trump of referring to the “national emergency situation” to perform tariff policies, which should be imposed with the approval of the congress.
The Court of Appeal, however, suspended the decision due to the dismissal of the government and ordered the plaintiff [US small businesses] In matters of response to response until June 5 and administration until June 9, in accordance with the report with First Post.
In addition to court problems related to tariffs, another reason for moderate recovery in the American dollar is a clear signal from the Federal Reserve (FED) that it will focus only on maintaining a double mandate of the central bank, rejecting the recent political pressure on the part of Trump.
Jerome Powell, chairman of the Fed, said after his first meeting face to face with Trump since the return of the latter to the White House, that the politics path will completely depend on “upcoming economic information and what it means for the perspective”-Donosi Reuters. Powell also said that he did not express his intentions Trump about the perspective of monetary policy. Trump said he thinks the Fed is making a mistake without lowering interest rates.
In the case of fresh guidelines regarding the forecast of monetary policy in the USA, investors are waiting for the data of the USA personal consumption price indicator (PCE) in April at 12:30 GMT. According to the CME Fedwatch Fed tool, interest rates are not expected to be reduced to September.

Technical analysis: Pound Sterling remains above 20-day EMA

The pound of sterling drops to nearly 1.3470 compared to the American dollar on Friday after a mighty advantage of the pros of the previous day. The GBP/USD pair contains key horizontal support deleted from the highest level of 26 September 1.3434 and increases to almost 1.3500. The steam perspectives remain strenuous because the 20-day interpretation average (EMA) is about 1.3395.

The 14-day relative force indicator (RSI) tries to stop above 60.00. A liquid shoot would disappear if the RSI slipped into the range 40.00-60.00.

On the other hand, on January 13, 2022, the highest 1.3750 will be a key obstacle to the couple. Looking down, the 20-day EMA will act as the main area of support.