- Pound Sterling shows the strength before the central bank's main decisions this week.
- Boe is set at a lower rate on Thursday, with market participants waiting for the central bank to direct acceleration in political and GDP lower growth prospects.
- Fed keeps interest rates almost certain on Wednesday.
Pound Sterling (GBP) will rise on Tuesday at the North American trading lessons against the US dollar (USD) to 1.3390. Its GBP/USD pair Strengthens as the US dollar decreases while investors are waiting for a cash policy decision Federal Reserve (Fed) announced on Wednesday. The US Dollar Exle (DXY), which monitors the value of Greenback to six main currencies, falls below 99.50.
According to the CME Fedwatch tool, Fed is almost sure that the loan rates are permanently between 4.25%-4.50%. This would be a third straight policy meeting where the central bank would leave interest rates unchanged. Entrepreneurs have become more and more confident in the preservation of Status Quo on Wednesday, as officials have challenged the approach to preserving the “wait and watching” approach, as there is no clarity of economic prospects under the leadership of US President Trump.
US Dollar Price Today
The table below shows the percentage of the US dollar (USD) on the main currencies listed today. The US dollar was the weakest against Japanese yen.
| Dollar | EUR | Gbp | Jpy | Kadi | Audio | Nzd | Chf | |
|---|---|---|---|---|---|---|---|---|
| Dollar | -0.23% | -0.71% | -0.74% | -0.20% | 0.00% | -0.34% | 0.15% | |
| EUR | 0.23% | -0.50% | -0.50% | 0.02% | 0.22% | -0.12% | 0.37% | |
| Gbp | 0.71% | 0.50% | -0.02% | 0.52% | 0.75% | 0.37% | 0.89% | |
| Jpy | 0.74% | 0.50% | 0.02% | 0.54% | 0.76% | 0.48% | 0.91% | |
| Kadi | 0.20% | -0.02% | -0.52% | -0.54% | 0.21% | -0.15% | 0.37% | |
| Audio | -0.00% | -0.22% | -0.75% | -0.76% | -0.21% | -0.35% | 0.15% | |
| Nzd | 0.34% | 0.12% | -0.37% | -0.48% | 0.15% | 0.35% | 0.51% | |
| Chf | -0.15% | -0.37% | -0.89% | -0.91% | -0.37% | -0.15% | -0.51% |
The heat card shows the percentage of the main currencies relative to each other. The basic currency is selected from the left column, but the quote currency is selected from the upper row. For example, if you select the US dollar left column and move the horizontal line to the Japanese yen, the percentage change in the box marks the USD (base)/JPY (quote).
Daily Digest Market Movers: Pound Sterling outperforms his peers
- Nael Sterling is firmly traded against his larger peers on Tuesday. Britain's currency will reach before the Bank of England (Boe) interest rate announced on Thursday and in which the central bank should reduce interest prices 25 base points (BPS) to 4.25%. This would be by Boe in its current monetary expansion cycle, which began with the current interest rate, which began in August.
- Investors pay a lot of attention to BOE's instructions on monetary policy and economic outlook Against the backdrop of higher tariffs established by US President Donald Trump on April 2, the so -called liberation day. At the March Policy Meeting, Boe instructed the gradual approach to cutting rates. Boe officials had not then discounted the risk of a trade war, which governor Andrew Bailey emphasized it in late April.
- Participants in the market have predicted that Boe could withdraw their stages of a gradual policy mitigation and a lower growth forecast. “We assume that Boe will humiliate its gross domestic product (GDP) forecasts from the Trade War and there is a risk that Boe could remove a reference to a step -by -step cutting cycle,” said Australian Commonwealth Bank analysts.
- In the meantime, traders think that Boe will be able to offer two more interest rates this year after Thursday.
- In the US economy, market experts have warned that US President Trump's new economic policies are negative about the economy, assuming that higher tariffs can cause slower economic growth and consumer inflation. “At the heart of this topic is the risk of stagflation caused by increased trade costs and supply chain disorders,” says Nick Timiraos, according to the Wall Street Journal (WSJ).
- On the contrary, Scott Bessent, US Treasury Secretary, has expressed confidence that tariff policies favors economic growth and helps to reduce trade deficiency. ”We think the growth of the next year will be up to 3%, which helps to reduce the federal deficiency -1% per annum,“Besent said in an interview with CNBC Television on Monday.
- Besent, Secretary of the US Treasury, has also confirmed that Washington can end several trade transactions this week. “I am very confident that 17 trade partners, except China, have made very good trade proposals and we (white house) are very close to some trade, may -go this week,” Bessent said. On the current state of the US-China trade prospect, Bessent said we would see important progress with China in the following weeks.
Technical Analysis: The ups of the pound sterling close to 1.3400
Pound pound sterling rises to 1.34000 near US dollar Tuesday. The couple tries to review the three -year -old highest peak 1.3445. The overall prospect is still bullish, as all short to long exponential moving average (EMAS) are higher.
The 14-day relative strength index (RSI) fights back to return to over 60.00. Fresh bullish momentum will start if RSI succeeds.
From four, the three -year -old is the main obstacle of 1.3445 pairs. Looking down, the highest of April 3, about 1.3200, acts as the main support area.
