- GBP/USD climbs to 1.3452 because traders digest American unemployment claims and housing breakdown.
- Inflation in Great Britain cools down a bit; The CPI core will drop to 3.5% y / rw May.
- Fed and Boe expected them to keep the rates; Dot plot, forecasts in the market attention.
GBP/USD regains a certain basis on Wednesday when traders are waiting for the decision of the Federal Reserve Policy (FED) among increased tensions in the Middle East and the issue of data on the unemployed claims in the USA. At the time of writing, the pair trads at 1.3452, which is an escalate of 0.19%.
Sterling is modestly gaining as traders, they are preparing to update the central bank and hesitate supple housing in the USA
Financial markets remain stressed because the tensions between Israel and Iran remain high. Comments of the US President Donald Trump suggest a constant assessment whether Washington will get involved in the conflict or whether they apply for a diplomatic exit. The latter seems far because Trump suggested that he lacked patience.
The United States Economic DOCT revealed that the initial unemployed claims for a week ending on June 14 increased by 245,000, as expected by economists. Other data showed that the start of the housing in May was 1.256 million, compared to 1.392 million in April, which is a 9.8%decrease. Building permits also fell by -2% of mother, from 1.422 million to 1.393 million.
According to the Office for National Statistics (ONS) on the other side of the Staw, inflation in Great Britain remained almost unchanged. The consumer price indicator (CPI) increased by 3.4% y / y, razed with forecasts, and the CPI cores dropped from 3.8% to 3.5% installment in the same period.
Fed and Boe decisions next
Considering the background, market participants are waiting for decisions regarding monetary policy Bank of England (Boe). Both central banks are expected to maintain unchanged rates, although in the case of the FED traders would examine the update of economic forecasts. In addition, they would examine the Dot plot, which only requires two officials to raise their dots higher, suggesting a more restrictive monetary policy.
On the Boe front, cash markets expect another Boe cut by September, after which another 25 base points may occur in December.
GBP/USD price forecast: Technical perspectives
GBP/USD suddenly reversed the course, trading nearly two weeks of the lowest level 1.3410, despite being prejudiced. The relative force indicator (RSI) shows that the shoot moved slightly a bear when RSI pierced the neutral composition up after reaching reading 47.
GBP/USD must pristine 1.3500 for stubborn continuation. After the next level of resistance, it would be a 20-day straight movable average (SMA) at 1.3531, followed by 1.3600. And vice versa, a decrease below 1.3400 will reveal the 50-day SMA to 1.3376 before 1.3300.
British pound price this week
The table below shows a percentage change in the British pound (GBP) compared to the main currencies this week. The British pound was the strongest in relation to the Canadian dollar.
| USD | EUR | GBP | JPy | Ribbon | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.08% | 0.67% | 0.03% | 0.70% | -0.59% | -0.51% | 0.65% | |
| EUR | -0.08% | 0.47% | -0.05% | 0.62% | -0.55% | -0.59% | 0.57% | |
| GBP | -0.67% | -0.47% | -0.49% | 0.15% | -1.02% | -1.05% | 0.10% | |
| JPy | -0.03% | 0.05% | 0.49% | 0.67% | -0.92% | -0.87% | 0.21% | |
| BOOR | -0.70% | -0.62% | -0.15% | -0.67% | -1.22% | -1.20% | -0.05% | |
| Aud | 0.59% | 0.55% | 1.02% | 0.92% | 1.22% | -0.04% | 1.13% | |
| NZD | 0.51% | 0.59% | 1.05% | 0.87% | 1.20% | 0.04% | 1.16% | |
| CHF | -0.65% | -0.57% | -0.10% | -0.21% | 0.05% | -1.13% | -1,16% |
The heat map shows percentage changes in the main currencies towards each other. The basic currency is collected from the left, and the quote currency is collected from the upper order. For example, if you choose a British pound on the left column and move along the horizontal line to the American dollar, the percentage shift displayed in the field will represent GBP (base)/USD (quote).
