- GBP/USD has no specific intrady direction and oscillates at the beginning of the new week.
- The USD maintains last week's lowest level of recovery and works with the wind.
- Bets for less Dovish Boe and hopes that the UK's efforts would limit the negative aspects of the Major.
The GBP/USD pair starts with a modest note of the new week and will oscillate around the narrow strip of 1,3300 roundtable during the Asian session.
The US Dollar (USD) maintains last week in the midst of the perennial lowest level in the midst of US-China trade negotiations in the midst of the insecurity, which in turn is considered a key factor that acts as a GBP/USD pair pair. US Treasury Secretary Scott Bessent said on Sunday that he did not know if US President Donald Trump had spoken to Chinese President Xi Jinping. This keeps the lid on the optimism led by Trump's claim that the tariff approaches to China were underway, and supports USD relatively safe impairment status.
On the other hand, the British Pound (GBP) will support support for optimistic domestic data released on Friday and hopes that the United Kingdom will soon enter into a trade transaction with the US. In fact, the UK's retail sales unexpectedly increased by 0.4% in March after the growth of the growth of 0.7% after the decline in the previous month. In the first quarter, retail sales rose by 1.6% – marking the strongest reading over four years and hardening the market expectations of the English -Anglism land more bank (Boe) interest rate cutting.
On the other hand, traders have evaluated the possibility that the Federal Reserve (Fed) will continue their interest rates cycle and lower loan costs in June at least three times by the end of this year. This with concern about the economic downturn of Trump's trade policy at the same time holds the USD bull back from contributing to the fresh bets and giving the GBP/USD a pair of support. Therefore, it is wise to wait for a strong follow -up before positioning significant negative aspects for prices on the spot.
Pound pound sterlings
The pound pound (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most tradable unit in the world of power (FX), which accounts for 12% of all transactions, an average of $ 630 billion a day for 2022 years, respectively. Its main trading pairs are GBP/USD, also known as “cable”, which accounts for 11%FX, GBP/JPY or “dragon”, as traders know (3%), and EUR/GBP (2%). The nail pound liner is released by the English Bank (Boe).
The only most important factor that affects the value of the pound sterling is the monetary policy decided by the Bank of England. Boe is based on his decisions on whether he has achieved his main goal of “price stability” – a constant inflation rate of about 2%. Its main tool to achieve this is the adaptation of interest rates. If inflation is too high, Boe tries to repel it by raising interest rates by making access to credit for people and businesses. This is generally positive for the GBP, as higher interest rates make Britain more attractive to global investors to park their money. If inflation falls too low, this sign is slowing down. In this scenario, Boe is considering lowering interest rates for credit for a credit to borrow more growth in investing in projects.
The data releases the health of the economy and can affect the value of the pound sterling. Such indicators such as GDP, manufacturing and services PMI and employment can all affect the direction of GDP. A strong economy is a good pound sterling. Not only does this attract more foreign investment, it can encourage boes to put up interest rates that directly strengthen the GBP. Otherwise, if the economic data is weak, the pound is likely to fall.
Another important nail pounding data is a trade balance. This indicator measures the difference between what the state earns from its exports and what it spends on imports over a period of time. If the state produces highly coveted exports, its currency will benefit from purely additional demand created by foreign buyers who want to buy those goods. Therefore, the positive balance of net trade strengthens the currency and, on the contrary, to obtain a negative balance.
