- The US economy contracted 0.3% in Q1, missing forecasts and raising Stagflation concerns.
- Inflation speeds up the Q1 price index by 3.7%, core PCE at 2.6% in March.
- ADP jobs data; Traders are dedicated to the NFP and ISM Manufacturing PMI.
Pound Sterling (GBP) collapsed against the US dollar (USD) while economy in the United States (US)
GBP/USD fell 0.51% to 1.3331 as weak US growth and sticky prices raised demand for greenback
The US Commerce Department has shown that the GDP contracted 0.3% in Q1 2025, from a 2.4% growth in the last quarter of 2024 and losing consensus of a moderate 0.3% growth. Meanwhile, a measure of prices for the same period increased by 3.7%, indicating a re -motivation of inflation.
Recently, the US Bureau of Economic Assessment (Bea) showed that the preferred gauge of Fed's inflation, the main price index of personal consumption (PCE) of the core personal consumption (PCE), extended by 2.6% in March, as economists expected, and down from 3% reached in February.
Other data has shown that private US companies have lease fewer people than estimated, according to national working change data. The data showed that 62K people were working, below the 115k and March of 147K forecasts.
Throughout the lake, the United Kingdom (UK) is expected to reach a US deal and develop 10% tariffs imposed by Washington.
April's cable is expected to end with the acquisitions of more than 3.8%. However, US painting data has recently released a stagflationary scenario that motivates investors to buy greenback, as GBP/USD has expanded its losses on two straight days.
This week, the US Economic Docket will feature the ISM Making PMI and the release of always important Nonfarm Payrolls Data.
GBP/USD Price Forecasting: Technical Perspective
GBP/USD has changed gears and combined within a range of 1.3300 – 1.3400 in the last three days. Sellers continue to gather steam as shown by Kamag -Child Index (RSI) index (RSI), which, despite being bullish, has removed the latest trough, indicating that momentum is moving.
If GBP/USD Removing the 20-day simple transfer of average (SMA) to 1.3316, it is possible to challenge 1.3300. A violation will eventually expose the 1.3200 mark, followed by the 50-day SMA to 1.2978.
On the other hand, bulls driving the exchange rate of the previous 1.3400 provided a way to re-test the year-to-date (YTD) high of 1.3443.
British Pound Price this month
The table below shows the percentage change of the British Pounds (GBP) against the listed major currencies this month. The British Pound is the strongest against the US dollar.
| USD | EUR | Gbp | Jpy | Cad | Aud | Nzd | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -4.63% | -3.11% | -4.77% | -3.99% | -2.26% | -4.18% | -6.89% | |
| EUR | 4.63% | 1.53% | -0.18% | 0.63% | 2.42% | 0.42% | -2.41% | |
| Gbp | 3.11% | -1.53% | -1.71% | -0.90% | 0.86% | -1.09% | -3.90% | |
| Jpy | 4.77% | 0.18% | 1.71% | 0.83% | 2.64% | 0.61% | -2.18% | |
| Cad | 3.99% | -0.63% | 0.90% | -0.83% | 1.79% | -0.20% | -3.02% | |
| Aud | 2.26% | -2.42% | -0.86% | -2.64% | -1.79% | -1.95% | -4.72% | |
| Nzd | 4.18% | -0.42% | 1.09% | -0.61% | 0.20% | 1.95% | -2.83% | |
| CHF | 6.89% | 2.41% | 3.90% | 2.18% | 3.02% | 4.72% | 2.83% |
The heat map shows the percentage change of basic currencies against each other. The base currency is taken from the left column, while the quote currency is taken from the top row. For example, if you choose the British pounds from the left column and move to the horizontal line in the US dollar, the percentage change shown in the box represents GBP (Base)/USD (quote).
