- The sterling is recovered despite the fact that unemployment in the United Kingdom remains unchanged by 4.4% while strong salary growth complicates the BOE relaxation path.
- The US dollar index falls more than 5% in three weeks as the demand for sure shelter fades and tariff risks grow.
- The United Kingdom inflation data and Powell’s speech are at the attention center; The United Kingdom is still exempt from American tariffs for now.
The sterling pound (GBP) rose and reached six months against the US dollar (USD) on Tuesday, since the narrative of the financial markets remains linked to the imposition of tariffs by the US. The pair GBP/USD ignored the weak employment data of the United Kingdom; Therefore, GBP/USD rose 0.36% and is quoted at 1,3233.
GBP/USD rises ignoring the weak employment data of the United Kingdom while BOE rate cuts are increased and the USD continues to fall
The mood on the market remains positive, to the detriment of safe refuge currencies such as the dollar, which has depreciated more than 5.34% during the last three weeks, according to the US dollar index (DXY).
The United Kingdom labor market data showed that the unemployment rate remained unchanged in 4.4% in February, as expected and aligned with analysts’ estimates. However, wages remained strong, exerting pressure on the Bank of England (BOE), which had refrained from relaxing politics, justifying that wages were still high.
Despite this, market participants had mainly valued a 90% probability that the BOE will cut the rates at the May meeting, followed by two other cuts, through the futures market of interest rates.
Meanwhile, the United Kingdom has remained out of the reach of US President Donald Trump to apply tariffs on British goods, which would exert pressure on the economy, opening the door to a deceleration.
However, the growing concerns about a global recession driven by the commercial war maintain the feeling of investors deteriorating.
GBP/USD operators are waiting for the publication of the latest inflation figures in the United Kingdom. On the other side of the Atlantic, the US Agenda will feature speakers of the Federal Reserve (FED), with investors focused on the speech of the president of the FED, Jerome Powell, Wednesday.
GBP/USD price forecast: technical perspective
After climbing for six consecutive days, the GBP/USD torque has reached a maximum of the year (YTD) of 1,3251, but the operators have retired something towards the 1,3220 area. A daily closure above the maximum of the YTD will expose the level of 1,3300. On the other hand, the first support would be the maximum of April 14, 1,3200, followed by the minimum of the same day of 1,3163.
LIBRA ESTERLINA PRICE TODAY
The lower table shows the percentage of pounding sterling (GBP) compared to the main currencies today. Libra sterling was the strongest currency against the Swiss Franco.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.55% | -0.25% | 0.10% | 0.58% | -0.52% | -0.62% | 0.76% | |
| EUR | -0.55% | -0.79% | -0.42% | 0.04% | -1.00% | -1.16% | 0.23% | |
| GBP | 0.25% | 0.79% | 0.38% | 0.83% | -0.20% | -0.37% | 1.02% | |
| JPY | -0.10% | 0.42% | -0.38% | 0.47% | -0.59% | -0.87% | 0.64% | |
| CAD | -0.58% | -0.04% | -0.83% | -0.47% | -1.05% | -1.20% | 0.19% | |
| Aud | 0.52% | 1.00% | 0.20% | 0.59% | 1.05% | -0.17% | 1.23% | |
| NZD | 0.62% | 1.16% | 0.37% | 0.87% | 1.20% | 0.17% | 1.40% | |
| CHF | -0.76% | -0.23% | -1.02% | -0.64% | -0.19% | -1.23% | -1.40% |
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.
