- The GBP/USD remains firm while the manufacturing PMI ISM falls to 49, feeding fears of recession, driven by the increase in tariffs.
- The manufacture of the United Kingdom sinks at a minimum of 17 months, but the pound remains resistant amid the general weakness of the dollar.
- Starmer seeks a commercial agreement between the US and the United Kingdom to avoid tariffs; The operators now wait for the ISM services PMI, the NFP and Powell’s speech.
The sterling pound (GBP) is quoted with minimal losses against the US dollar (USD) after the publication of the last manufacturing PMI of the Supply Management Institute (ISM), suggesting that business conditions are deteriorating, with companies feeling the impact of tariffs. At the time of writing, the GBP/USD quotes in 1,2920, practically unchanged.
The pound remains firm despite the smooth PMI of the United Kingdom while the US manufacturing activity collapses and Barkin of the Fed warns about the risks of tariffs
The manufacturing PMI ism of March painted a gloomy economic panorama after falling to 49 from February 50.3, below the 49.5 forecasts. The index contracted after two consecutive months of expansion, preceded by 26 consecutive months of contraction. At the same time, Jolts data reported by the US Department of Labor showed that vacancies in February decreased but remained at the same level, according to the publication. The figures were 7,568 million, falling from 7,762 million and below the estimates of 7.63 million.
Previously, S&P global revealed that the manufacturing activity expanded, with the PMI rising from 49.8 to 50.2.
On the other side of the Atlantic, the manufacturing activity continued its descending trajectory with the global S&P falling to a minimum of 17 months of 44.9, and even so, the GBP/USD torque was not affected while the dollar suffered in all areas.
Meanwhile, the Prime Minister of the United Kingdom, Keir Starmer, announced that conversations with the US about a commercial agreement could help Britain to avoid tariffs imposed by Trump.
The American dollar index (DXY), which tracks the yield of the dollar against a basket of six pairs, falls 0.08% to 104.10.
Meanwhile, Richmond’s president of the Fed, Thomas Barkin, declared that the bond market is valuing more recession risks, noting that he sees challenges for inflation and employment derived from tariffs.
This week, the US economic agenda will include the ISM services PMI, the non -agricultural payroll of March and the speech of the president of the Fed, Jerome Powell, Friday. In the United Kingdom, the agenda is scarce with operators waiting for the construction PMI.
GBP/USD forecast: Technical perspective
The GBP/USD bullish trend is maintained, although in the short term the torque will be consolidated. Buyers need to exceed the peak of March 31, 1,2972 if they want to prove their chances of reaching 1.30. If it is exceeded, the next stop would be the maximum of November 7, 1,3047. On the other hand, if the sellers push the exchange rate below 1,2900, the following support would be the minimum of March 27, 1,2865, followed by the simple mobile average (SMA) of 200 days in 1,2805.
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 | 0.22% | 0.10% | -0.30% | 0.01% | 0.09% | 0.26% | 0.32% | |
| EUR | -0.22% | -0.02% | -0.45% | -0.17% | -0.04% | 0.08% | 0.15% | |
| GBP | -0.10% | 0.02% | -0.50% | -0.10% | -0.02% | 0.13% | 0.22% | |
| JPY | 0.30% | 0.45% | 0.50% | 0.30% | 0.43% | 0.59% | 0.53% | |
| CAD | -0.01% | 0.17% | 0.10% | -0.30% | 0.11% | 0.25% | 0.32% | |
| Aud | -0.09% | 0.04% | 0.02% | -0.43% | -0.11% | 0.14% | 0.20% | |
| NZD | -0.26% | -0.08% | -0.13% | -0.59% | -0.25% | -0.14% | 0.06% | |
| CHF | -0.32% | -0.15% | -0.22% | -0.53% | -0.32% | -0.20% | -0.06% |
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.
