- The United Kingdom inflation falls to 2.6% year -on -year in March, failing the BOE projections and reinforcing an 86% probabilities of rate cut in May.
- Strong retail sales in the US masked by a weak control group; The DXY collapses to 99.44 in the midst of a feeling of risk aversion.
- The GBP/USD could extend profits unless Powell delivers a hard line surprise in your next comments.
The pound sterling advanced during the North American session, registering soft profits of 0.14% against the dollar, since inflation slowed to its lowest level in three months. This adds pressure to the Bank of England to reduce interest rates. At the time of writing, the GBP/USD quotes in 1,3248 after reaching a daily peak of 1,3291.
GBP/Usd up as the softer ICC feeds the expectations of rate cut in May; Attention focuses on Powell’s speech
Inflation in the United Kingdom dropped from 2.8% in February to 2.6% year -on -year in March, below the estimates of 2.7% and the projections of the Bank of England (BOE). In February, the BOE expected prices to rise to 3.6% in April, anticipating that rates and public service invoices would increase.
The monetary market participants had set an 86% probability that the BOE trimmed the interest rate at 25 basic points (PBS) on May 8.
On the other side of the Atlantic, retail sales in the US increased, backed by car sales, the Department of Commerce revealed. Sales expanded 1.4% monthly, above 1.3% estimates and exceeding the figure of February 0.2%. Although the numbers were positive, the control group, used to calculate the Gross Domestic Product (GDP), increased only 0.4%, below 1.3%of the previous month and failing the 0.6%forecasts.
Meanwhile, commercial tensions between the US and China keep the mood of the gloomy market, since Wall Street records losses while the dollar continues to fall. The American dollar index (DXY), which tracks the performance of the US currency in front of a basket of six currencies, falls 0.66% to 99.44.
Given the background, the USD/USD is expected to continue in a bullish trend, but a speech by the president of the FED, Jerome Powell, at 17:30 GMT could change the direction. If Powell adopts a hard line posture, a greater decrease in the pair is expected, which could pave the way to test the 1,3200 figure.
GBP/USD price forecast: technical perspective
The GBP/USD maintains a bullish trend, but at the time of writing, it has retired from the annual peaks, indicating that buyers are not finding price acceptance about 1.33. A daily closure above 1,3250 could pave the way to try the previous one. Otherwise, the pair could fall and challenge the figure of 1.32. If it is exceeded, the following support will be the minimum oscillation of April 15, 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 US dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.85% | -0.14% | -0.43% | -0.52% | -0.82% | -0.39% | -0.98% | |
| EUR | 0.85% | 0.74% | 0.44% | 0.33% | 0.26% | 0.49% | -0.13% | |
| GBP | 0.14% | -0.74% | -0.30% | -0.40% | -0.47% | -0.26% | -0.81% | |
| JPY | 0.43% | -0.44% | 0.30% | -0.09% | -0.10% | 0.09% | -0.60% | |
| CAD | 0.52% | -0.33% | 0.40% | 0.09% | -0.03% | 0.17% | -0.40% | |
| Aud | 0.82% | -0.26% | 0.47% | 0.10% | 0.03% | 0.19% | -0.35% | |
| NZD | 0.39% | -0.49% | 0.26% | -0.09% | -0.17% | -0.19% | -0.56% | |
| CHF | 0.98% | 0.13% | 0.81% | 0.60% | 0.40% | 0.35% | 0.56% |
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.
