- GBP/USD got stuck in a brief time when Trump’s tariff cycle begins again.
- Trump delayed the tariff term from July 9 to August 1, he claims that there will be no more delays.
- The markets are mostly betting on future tariff delays.
GBP/USD opened the charts near 1.3600, when the market is struggling with inconsistent political news about the policy of the WhipSaw Tariff President Donald Trump. The announced and immediate delayed at the beginning of April were rejected from July 9 to August 1, and in 24 hours President Trump announced that further delays or tariff suspension may and cannot be expected.
Adding further fuel to a tariff fire, President Trump announced a novel 50% tariff for the entire copper imports to the USA, which, as he insisted, will take part “today” on Tuesday. Trump also repeated additional two -digit tariffs for all goods from a handful of countries, including 25% of import taxes for all goods from South Korea and Japan. It is not clear how Trump’s administration intends to transfer these costs to the target countries instead of consumers and importers who traditionally bear the costs of tariffs and import taxes.
The economic calendar remains a skinny matter this week, leaving investors struggling with the ongoing trade war and the general lack of clarp administration. Despite the brief -term moods of the bear, most investors expect that Trump’s syndrome will find reasons to cancel or hang tariffs again. The changing trade flood, which the employees of the president and Key Trump promise, are already on the president’s desk or just around the corner, they have not yet materialized. Investors remain skeptical that material progress in robust frames of commercial contracts covering excessive taxation of American voters will bring significant results.
GBP/USD price
GBP/USD still evades at the bottom end of the brief -term withdrawal after leaving long -term maximas near 1,3800 at the beginning of July. Since then, the price action has fallen down; However, Cable is still trading on the northern side of the 50-day interpretation average (EMA) near 1.3470. Technical oscillators have returned to the purchased conditions, but the brief -term rush down can still take place to run.
Daily GBP/USD chart
Pound sterling faq
The Sterling (GBP) pound is the oldest currency in the world (886 ne) and the official currency of Great Britain. According to data 2022, this is the fourth most rotating currency exchange unit (FX), which is 12% of all transactions, an average of $ 630 billion a day. Key commercial pairs are GBP/USD, also known as a “cable”, which is 11%FX, GBP/JPy or “Dragon”, as is known by traders (3%) and EUR/GBP (2%). The Sterling pound is published by Bank of England (Boe).
One most significant factor affecting the value of the pound of Szterling is the monetary policy undertaken by Bank of England. Boe bases his decisions whether he has achieved his main goal of “price stability” – a constant inflation rate of about 2%. Its main tool to achieve this is to adjust the interest rates. When the inflation is too high, Boe will try to restore it, raising interest rates, which makes him more costly for people and companies. This is generally positive for GBP, because higher interest rates make Great Britain a more attractive place for global investors to park their money. When inflation falls too low, it is a sign that economic growth slows down. In this scenario, Boe will consider reducing interest rates to a affordable loan so that companies borrow more to invest in projects generating growth.
The data release the health of the economy and can affect the value of the pound of Szterling. Indicators such as GDP, PMI production and services and employment can affect the direction of GBP. A robust economy is good for sterling. It not only attracts more foreign investment, but can encourage Boe to set interest rates, which will directly strengthen GBP. Otherwise, if economic data is frail, the pound of sterling will probably fall.
Another significant issue of data for a pound of Szterling is a commercial balance. This indicator measures the difference between what the country earns on exports and what spends on imports in a given period. If the country produces a highly wanted export, its currency will benefit only from additional demand created by foreign buyers trying to buy these goods. Therefore, a positive net trade balance strengthens currency and vice versa for a negative balance.
