- The GBP/USD moves up the sixth consecutive day and the prevalent USD seller tendency.
- The commercial war between the US and China weakens confidence in the US economy and weighs on the USD.
- Divergent policy expectations between Fed and BOE also support the pair before the United Kingdom’s work data.
The GBP/USD torque attracts buyers for the sixth consecutive day and rises above the 1,3200 brand, reaching a new maximum since October 2024 during the Asian session on Tuesday. In addition, the bearish feeling around the US dollar (USD) suggests that the lower resistance path for cash prices remains up.
Investors are still concerned about the possible economic repercussions of the growing commercial war between the US and China. In fact, China increased its tariffs on US imports at 125% on Friday in retaliation for the decision of US President Donald Trump to raise tariffs on Chinese products to 145% unprecedented. The US still imports several difficult materials to replace China and this development weakens confidence in the US economy, which, in turn, keeps the USD’s bulls on the defensive and supports the GBP/USD.
In addition, investors have been discounting the possibility that the Federal Reserve (Fed) soon resumes its cycle of feat cuts and reduces indebtedness costs at 90 basic points by the end of the year. Apart from this, a generally positive risk tone, backed by the temporary suspension of Trump tariffs, undermines the secure shelter dollar. The sterling pound (GBP), on the other hand, receives support from a lower probability of a cut of interest rates by the Bank of England (BOE) next month. This is considered another factor that acts as a tail wind for the GBP/USD torque.
Even from a technical perspective, the sustained breakup and acceptance above the 1,3100 brand validates the short -term positive perspective. Therefore, a subsequent movement towards the proof of the following relevant obstacle, near the area of 1,3260, seems a different possibility. However, investors could choose to wait for the publication of the monthly Employment Report of the United Kingdom and the EMPIRE STATE MANUFACTURE INDEX.
Economic indicator
Unemployment ilo rate
The unemployment ilo rate published by the National Statistics corresponds to the percentage of unemployed within the universe of active population. It is a key indicator for the British economy. When this rate rises, it indicates a containment in the expansion of the United Kingdom in the field of the European Union labor. As a result, the growth of this rate entails a weakening of the British economy.
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Next publication:
Mar ABR 15, 2025 06:00
Frequency:
Monthly
Dear:
4.4%
Previous:
4.4%
Fountain:
Office for National Statistics
The unemployment rate is the widest indicator of the British labor market. The figure is highlighted by the media, beyond the financial sector, giving the publication a more significant impact despite its late publication. It is published about six weeks after the end of the month. Although the Bank of England has the task of maintaining price stability, there is substantial inverse correlation between unemployment and inflation. A figure higher than expected tends to be bassist for the GBP.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
