- The GBP/USD earns 0.55% while investors sell USD in the midst of commercial uncertainty.
- China demands total elimination of tariffs; American officials oppose a commitment.
- The DXY falls to 99.45 while Fed officials adopt a cautious tone and dependent on the data.
The sterling pound recovered some land against the US dollar on Thursday, since the market participants became pessimistic about the de -escalation of the commercial war between the US and China. Beijing is pressing Washington to eliminate tariffs and have denied conversations. At the time of writing, the GBP/USD quotes above 1,3300 and earns 0.55%.
The GBP/USD rises above 1,3300 while the stagnation of tariffs affects the feeling of risk and weakens the US dollar in general
The price action remains dominated by the dollar, which fell 0.32% as indicated by the US dollar index (DXY), which follows the dollar’s performance against a pairs basket. The DXY is located at 99.45 after reaching a daily peak of 99.84.
On Thursday, the spokesman of the Ministry of Commerce of China urged the US to raise all tariffs on Chinese imports “if you really want to solve the problem.”
Although US president Donald Trump was willing to start negotiations, US Treasury Secretary, Scott Besent, threw a bucket of cold water to the operators, saying that reducing tariffs unilaterally is not an option.
In the data front, the requests for durable goods in the US were fired in March 0.9% to 9.2% thanks to aircraft reserves. The initial applications of unemployment subsidy for the week that ended on April 19 increased by 222K as expected, going up from 216k in the previous reading.
A multitude of Fed speakers is crossing the cables. Beth Hammack of Cleveland’s Fed said that the US Central Bank could act in June if the data justifies it, although he added that uncertainty is weighing on companies and their planning. The governor of the Fed, Christopher Waller, echoed his words, although he added that if the labor market weakens, “the feat cuts could come from an increase in unemployment.”
Other data revealed that existing housing sales fell by -5.9% of 4.27 million to 4.02 million, impacted by the highest indebtedness costs.
GBP/USD price forecast: technical perspective
In this context, the GBP/USD is prepared to extend its profits, although the failure in reaching a daily closure above Wednesday from 1,3338 could sponsor a setback towards the simple mobile average (SMA) of 50 days in 1,3194.
However, if buyers push the exchange rate above 1,3350, it will expose the figure of 1,3400, followed by the maximum of the year to date (YTD) of 1,3423.
LIBRA ESTERLINA PRICE THIS WEEK
The lower table shows the percentage of sterling pound (GBP) compared to the main currencies this week. Libra sterling was the strongest currency against the Swiss Franco.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.26% | -0.05% | 0.36% | 0.26% | -0.23% | -0.94% | 1.29% | |
| EUR | -0.26% | -0.47% | 0.05% | -0.05% | -0.67% | -1.23% | 1.01% | |
| GBP | 0.05% | 0.47% | 0.70% | 0.43% | -0.22% | -0.77% | 1.48% | |
| JPY | -0.36% | -0.05% | -0.70% | -0.08% | -0.68% | -1.15% | 0.98% | |
| CAD | -0.26% | 0.05% | -0.43% | 0.08% | -0.60% | -1.18% | 1.05% | |
| Aud | 0.23% | 0.67% | 0.22% | 0.68% | 0.60% | -0.54% | 1.68% | |
| NZD | 0.94% | 1.23% | 0.77% | 1.15% | 1.18% | 0.54% | 2.29% | |
| CHF | -1.29% | -1.01% | -1.48% | -0.98% | -1.05% | -1.68% | -2.29% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the sterling pound from the left column and move along the horizontal line to the US dollar, the percentage change shown in the box will represent the GBP (base)/USD (quotation).
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.
