Libra sterling quotes down while Bailey del Boe warns about the risk of commercial warfare
The sterling pound (GBP) falls in front of its peers, except the American currencies, Thursday. The British currency faces pressure as investors become cautious about the probable economic panorama of the United Kingdom (UK) before the tariffs announced by the president of the United States (US), Donald Trump, earlier this month.
The governor of the Bank of England (BOE), Andrew Bailey, has expressed concern about economic growth and emphasized the need to consider the risk of commercial war. “We must take the risk to growth very seriously,” Bailey said outside the spring meetings of the International Monetary Fund (IMF) on Wednesday and added “we are currently working on that because we have a decision on the interest rate that is coming in two weeks,” reports Reuters. At the May policy meeting, the operators are increasingly sure that the BOE will cut interest rates at 25 basic points (BPS) to 4.25%. Read more…
GBP/USD forecast: The sterling pound could lower if the 1,3250 support fails
The GBP/USD extended its decline to a second consecutive day on Wednesday and registered its lowest daily closure in a week about 1,3250. The pair maintains its position early on Thursday and recovers around 1,3300.
The disappointing data of the purchasing managers index (PMI) of the United Kingdom, which showed a contraction in the business activity of the private sector in April, caused the sterling pound to weaken in front of its rivals during the European negotiation hours on Wednesday. Later in the day, the US dollar (USD) benefited from increasing optimism about the relaxation of tensions between China and the US, which caused the pair to extend down. Read more…
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.
