- GBP/USD withdraws to 1.3700 after the PCE core will augment by 2.7% installment, slightly above expectations.
- In June, consumer moods in the USA are undergoing; Long -term inflation expectations have changed lower.
- Progress in the field of transactions with China and the EU is added by Wwards dollar among monthly flows.
The GBP/USD reversal by over 0.10% after reaching almost four years of maximum 1,3770 on Thursday, immersing to 1.3700, when the American dollar regains some grounds after issuing the basic price indicator of the US personal apply (PCE) for May. This, with the improvement of consumer moods among American households, is a life line for a zloty.
Sterling Eases after almost 4 years of height, because stronger inflation in the USA and sanguine support of consumer sentiments
The market mood remains sanguine, because the basic PCE in May increased by 2.7% y / y, tenth above estimates and April data. The header inflation in the same period increased by 2.3%. As expected.
Recently, the University of Michigan (UOM) revealed that consumer moods in June improved moderately. The indicator increased from 60.5 to 60.7, while the inflation expectations were corrected down and households expect prices from 5.1% to 5% in the following year. Over the next five years, it is expected that inflation is about 4%, compared to 4.1%.
In addition, commercial messages disclosed by the American Secretary of Trade Lutnick said that the US and China finalized the trade agreement two days ago and added that more contracts would be closed. Bloomberg revealed that the European Union and the US may conclude a trade agreement before the date of July 9.
The rush is continued because the American dollar remains battered. The American dollar index (DXY), which tracks Buck performance in relation to the six currencies basket, dropped by 0.07% at 97.28. Although the flows at the end of the month usually favor Greenback, Barclays mentioned that it could weaken at the end of June.
In Great Britain, disguises were sporadic. However, most analysts examine the fiscal budget of the prime minister of Keira Starmer, which according to Rabobank is described as “overhang of a huge debt ratio/GDP and a deficit on the current account in Great Britain.”
GBP/USD price forecast: Technical perspectives
GBP/USD deviation remains intact, but buyers seem to lose a certain shoot after reaching long -term maximas near 1.3770. However, the shoot presented by the relative force indicator (RSI) indicates that Bulls can test 1,3800 in the near future.
On the other hand, if GBP/USD falls below 1.3,700, expect a decrease in the direction of 1.3600, with a further defect perceptible below the 20-day straight movable average (SMA) to 1.3561. If it is exceeded, the next stop would be the lowest level of June 24 1.3510.
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 American dollar.
| USD | EUR | GBP | JPy | BOOR | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -2.25% | -2.29% | -1.39% | -0.72% | -1.61% | -1.88% | -2.29% | |
| EUR | 2.25% | -0.06% | 0.93% | 1.58% | 0.62% | 0.39% | -0.07% | |
| GBP | 2.29% | 0.06% | 1.05% | 1.65% | 0.68% | 0.45% | -0.01% | |
| JPy | 1.39% | -0.93% | -1.05% | 0.65% | -0.27% | -0.46% | -1.01% | |
| BOOR | 0.72% | -1.58% | -1.65% | -0.65% | -0.86% | -1,17% | -1.62% | |
| Aud | 1.61% | -0.62% | -0.68% | 0.27% | 0.86% | -0.25% | -0.69% | |
| NZD | 1.88% | -0.39% | -0.45% | 0.46% | 1.17% | 0.25% | -0.45% | |
| CHF | 2.29% | 0.07% | 0.01% | 1.01% | 1.62% | 0.69% | 0.45% |
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).
