- GBP/USD remains stuck near 1.3700 when ambiguous market risk.
- Cable traders remain largely balanced, but green flows can return at any time.
- The fresh tariff threatening party at the top of the next tariff delay is poorly mixing, the sentiment of the popliteal tendon market.
GBP/USD turned a tight wheel on Wednesday, trapped near the 1,3700 handle, when traders are waiting for any significant change in macroeconomic factors. The Trump administration focused on recent tariff threats, issuing notifications of additional two -digit tariffs in several countries.
Despite the growth in the planned tariffs of President Trump, market moods remain more or less stable for now. Trump’s team has terrible achievements in the scope of adopting and maintaining frequently endangered tariffs, and investors at some point in banking on a different delay. The Trump team initially announced a wide “mutual” tariffs, which were delayed until July 9, and then again until August 1. Trump insists that this time it really means, and they will not delay further.
Economic data remain confined this week, with dispersed medium level data in the offer on both sides of the Atlantic. The latest minutes of federal reserve meetings (FED) have shown that the FED remains deeply buried in the attitude of waiting for waiting, and the decision -makers of the Central Bank were afraid of US economic prospects. According to the internal Fed discussions, the header risk of inflation and inheritance factors on the labor market decreased, but the last meeting of the rate took place in front of the renewed tariff threats. The spread between individual decision -makers also expanded, when to re -lower interest rates, and several members of the Federal Voting of the Open Market (FOMC) Committee (FOMC) do not agree with whether the first reduction in the rate should take place in July or be pushed in 2026.
GBP/USD price forecast
GBP/USD still evades at the bottom end of the compact -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 compact -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 vital 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 exorbitant 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 low-cost 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 feeble, 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.
