- GBP/USD continues to ride familiar technical levels near 1.3000.
- Market data has taken a rear seat for the headlines with looming on the horizon of customs tariff changes.
- The Trump administration is still on its way to impose a sweeping tariff package.
GBP/USD chart on familiar lands on Monday, which puts a familiar congestion area while investors are preparing for the latest repetition of US President Donald Trump’s threats. The Trump administration is scheduled to age a wide catalog of definitions on all trading partners in the United States starting on April 2.
The specific details of the Trump administration tariff plans for this week remain mysterious and void, but the threats of prominent tariffs remain a “mutual” tariff for each country that has its own import tariff for American goods, regardless of the economic context. It is also expected to make more revenge customs tariffs in Canada and the European Union, with an additional flat tariff for copper and cars in all fields.
The release schedule on the UK from the economic spreading of this week remains light this week, but it is scheduled to take place later this week. This NFP version can be a major database of markets as the American economy is heading to a post -parties economic environment, as March work data has been set as “Belweether” for the impact of the tariff tariff plans for the Trump team.
GBP/USD price expectations
GBP/USD chalk in the company’s unification phase is slightly lower than the 1.3000 handle. The pound traders still unwilling to pay bids up, and Greenback’s flows also dominate most Marketscape. However, short pressure cable is still limited as well.
The upward upward lines are still intact from the deep decrease in January at the price level 1.2100, and momentum is in favor of the offers of offers, as the price movement is competing on the high side of the 200 -day SIA moving average (EMA) at 1.2725.
GBP/USD
Stering questions and answers to the pound
The British pound (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most trading for foreign unit (FX) in the world, as it represents 12 % of all transactions, with an average of 630 billion dollars per day, according to 2022 data. Their main trading pairs are GBP/USD, also known as “Cable”, which represents 11 % of FX, GBP/JPY, or “dragon” as it is known by merchants (3 %), and, and EUR/GBP (2 %). The pound was released by the Bank of England (Bank of England).
The only most important factor that affects the value of the British pound is the monetary policy decided by the Bank of England. The Bank of England is based on its decisions on whether it has achieved its primary goal of “stability in prices” – a fixed inflation rate of about 2 %. Its primary performance to achieve this is to adjust interest rates. When inflation is very high, the Bank of England will try to make interest by raising interest rates, making it more expensive for people and companies to reach credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to stop their money. When inflation decreases significantly, economic growth slows down. In this scenario, the Bank of England will consider reducing interest rates to licensing credit so that companies borrow more to invest in growth generation projects.
Data affects the health of the economy and can affect the value of the pound sterling. Indicators such as gross domestic product, manufacturing, services, and employment can affect the GBP direction. The strong economy is useful for sterling. Not only attracts more foreign investments, but it may encourage the Bank of England to set interest rates, which will enhance the GBP directly. Otherwise, if the economic data is weak, it is possible that the pound sterling will fall.
Issuing another important data for the British pound is the balance of trade. This indicator measures the difference between what a country gains from its exports and what it spends on imports during a certain period. If a country produces very desirable exports, its currency will benefit from the additional demand resulting from foreign buyers who seek to buy these goods. Therefore, the positive and positive trade balance enhances the currency and vice versa to achieve a negative balance.
adxpro.online