- The Sterling book rises to almost 1,3350 compared to the US dollar while the latter is negotiated with caution due to the uncertainty about the status of American-Chinese commercial talks.
- Beijing continues to deny Trump's pretension to have commercial discussions with the XI of China.
- The BOE is almost sure to reduce interest rates next week.
The book Sterling (GBP) increased to almost 1,3350 compared to the US dollar (USD) during the North American session on Monday. The GBP / USD pair wins while the US dollar (USD) is negotiated with caution while investors are trying to clarify if the United States (United States) and China actively discuss the terms and conditions of a trade agreement.
The United States Dollar index (Dxy), which follows the value of the greenback against six main currencies, is traded inside the Friday range around 99.50.
China clearly said on Monday that there had been no trade discussions between President Xi Jinping and US President Donald Trump. The denial of China of recent talks between the two leaders comes after Trump said that Xi had called him, refrain from commenting on the calendar and the subjects covered.
In addition, investors seem to be on the sidelines while they are waiting for a multitude of outings of American economic data this week., Traders will focus on a series of employment, economic, economic, Gross domestic product (GDP), and inflation data, which will influence market expectations for monetary policy prospects of the Federal Reserve (Fed).
According to the CME Fedwatch tool, Fed officials should suspend the interest price Unchanged in the range of 4.25% to 4.50% during the political meeting from May 6 to 7.
Nourished The authorities have indicated that the adjustments in monetary policy would only be appropriate if they have greater clarity on economic prospects under the direction of Trump.
Daily Digest Market Movers: Pound Sterling starts the week on a positive note
- The pound sterling surpasses its peers at the start of the week despite the firm expectations that the Bank of England (BOE) will reduce interest rates from 25 base points (BPS) to 4.25% during the political meeting on May 8. The prevailing bets of the BOE increased in the middle of the price policy by the United States.
- Last week, the governor of the BOE, Andrew Bailey, underlined the need to consider the risk of trade war by the Central Bank. “We have to take the risk of growth very seriously,” Bailey told the spring meetings of the International Monetary Fund (IMF) in Washington. However, he excluded the possibility of an economic recession.
- In addition, Decident Boe Megan Greene also expressed her concerns concerning “low productivity” and “risks for the labor market” due to an increase in employers' contributions to social security schemes, in a discussion with the Atlantic Council's thinking group on Friday. Asked about the impact of Trump's pricing policy on inflation in the United Kingdom, Greene says that it expects the potential trade war to be “net disinflationist” for the economy.
- Market players seem to be prices insofar as the trade war between the United States and China will be limited, but the dead end could strike European economies, given the competitive advantage at low cost from Beijing. China should sell its products in European economies if the United States has reluctant to buy them. Such a scenario would be unfavorable for British commercial activity.
Technical analysis: Pound Sterling moves to almost 1,3350
The Sterling pound increased to almost 1,3350 compared to the US dollar during the European session on Monday. The pair wins as a global prospects Remains bullish, with all short -to -short exponential mobiles (EMAS) in a sloping above.
The 14 -day relative resistance index (RSI) bounces to almost 65.00 after cooled at 60.00, indicating an upward trend resurgence.
Uplining, the psychological level of 1,3,500 will be a key obstacle for the pair. Looking down, on April 3, approximately 1,3,200 will serve as a major domain of support.
