- The sterling pound bounces against its main peers after the United Kingdom ONS reported on retail sales data for March.
- Operators trust a reduction in interest rates of 25 basic points by the BOE in May.
- The one -display in the commercial war between the US and China has supported the US dollar.
The sterling pound (GBP) is recovered in front of its main peers on Friday after the publication of surprisingly positive retail sales of the United Kingdom for March. The National Statistics Office (ONS) has reported that retail sales, a key indicator of consumer spending, increased 0.4% month by month, while economists anticipated a 0.4% drop. In February, the consumer spending indicator grew 0.7%, decreased down from 1%.
In annual terms, retail sales grew surprisingly at a faster rate of 2.6% compared to the previous 2.2% publication and the moderate rhythm of 1.8% expected.
Theoretically, retail sales data of the United Kingdom force operators to reduce bets in favor of an expansive monetary policy by the Bank of England (BOE). However, operators are increasingly sure that the BOE will reduce interest rates at 25 basic points (PBS) to 4.25% at the May policy meeting.
The serious uncertainty about the global economic perspectives before the tariffs announced by the US president, Donald Trump, earlier this month and the most slow consumer price index data (CPI) than expected for March for March are the main catalysts behind the firm bets of the BOE.
The governor of the BOE, Andrew Bailey, warned that the “tariffs” announced by the US and the “countermeasures” of other nations are expected to bring “shock waves” to the economic growth of the United Kingdom, while talking to CNB television out of the spring meetings of the International Monetary Fund in Washington. However, Bailey ruled out the possibility of a recession. “I don’t think the United Kingdom’s economy is close to a recession at this time,” said Bailey. On Wednesday, he emphasized the need to consider the risk of commercial war. “We must take the risk for growth very seriously,” Bailey said.
Meanwhile, investors expect trade negotiations between the Chancellor of the United Kingdom, Rachel Reeves, and Washington on Friday. Before negotiations, Reeves said on the American television channel Newsmax on Thursday that they can “reach an agreement.”
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 Japanese and in Japanese.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.23% | 0.25% | 0.49% | 0.12% | 0.17% | 0.35% | 0.40% | |
| EUR | -0.23% | 0.02% | 0.24% | -0.13% | -0.07% | 0.12% | 0.16% | |
| GBP | -0.25% | -0.02% | 0.21% | -0.14% | -0.08% | 0.09% | 0.11% | |
| JPY | -0.49% | -0.24% | -0.21% | -0.36% | -0.33% | -0.16% | -0.12% | |
| CAD | -0.12% | 0.13% | 0.14% | 0.36% | -0.04% | 0.23% | 0.25% | |
| Aud | -0.17% | 0.07% | 0.08% | 0.33% | 0.04% | 0.19% | 0.20% | |
| NZD | -0.35% | -0.12% | -0.09% | 0.16% | -0.23% | -0.19% | 0.01% | |
| CHF | -0.40% | -0.16% | -0.11% | 0.12% | -0.25% | -0.20% | -0.01% |
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).
What moves the market today: the pound sterling seeks firm land against the US dollar
- The sterling pound strives to gain ground near the intra -dialy of 1,3280 against the US dollar (USD) during the European negotiation hours after the publication of the encouraging retail sales data of the United Kingdom. However, the GBP/USD torque continues to fall almost 0.3% since the US dollar (USD) is exceeding expectations for the hope of a decalsed in the commercial war between the US and China.
- The US dollar index (DXY), which follows the value of the dollar against six main currencies, bounces about 99.70 after a strong correction on Thursday. The fears of a spiral commercial war between the two greatest powers in the world began to decrease after the White House indicated that an agreement could be reached and indicated that both nations could reduce tariffs before sitting at the table.
- The US Treasury Secretary, Scott Besent, declared on Wednesday that both nations will reduce additional tariffs recently taxed. “None of the parties believes these are sustainable levels,” Besent said. The hopes of a decala in the war of tariffs have received an additional impulse since Beijing has indicated that it is considering tariff exemptions for some US products. According to a Bloomberg report, China is considering pausing a 125% tariff on American medical teams and some industrial chemicals.
- In the economic sphere, the data of orders for the most strong US goods than expected for March have indicated that the tariff policies of President Trump have begun to influence commercial activities. The cost of the orders of durable goods received by the business owners increased at a robust rate of 9.2%, exceeding the estimates of 2%and the previous publication of 0.9%. A multiple increase in economic data is evidence of the position of Federal Reserve (FED) officials to avoid any monetary policy adjustment before obtaining greater clarity on how new economic policies will shape economic perspectives.
Technical Analysis: The sterling pound descends about 1,3300
The sterling pound quotes about 1,3300 against the US dollar in the European session on Wednesday. The prospects of the PAR are still firm since all long -term exponential mobile socks are inclined to rise.
The 14 -day relative force index (RSI) cools about 63.00 after having been overcompiled. This indicates a mild correction in the pair after a strong rebound, but does not invalidate the upward trend.
Upwards, the psychological level of 1,3500 will be a key obstacle to the torque. Looking down, the maximum of April 3 around 1,3200 will act as an important support area.
LIBRA ESTERLINA FAQS
The sterling pound (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most commercialized currency exchange unit (FX) in the world, representing 12% of all transactions, with an average of $ 630 billion a day, according to data from 2022. Its key commercial peers are GBP/USD, which represents 11% of FX, GBP/JPY (3%) and EUR/GBP (2%). The sterling pound is issued by the Bank of England (BOE).
The most important factor that influences the value of sterling pound is the monetary policy decided by the Bank of England. The Bank of England bases its decisions itself has achieved its main objective of “price stability”: a constant inflation rate of around 2%. Its main tool to achieve this is the adjustment of interest rates. When inflation is too high, the Bank of England will try to control it by raising interest rates, which makes access to credit for people and companies more expensive. This is generally positive for sterling pound, since higher interest rates make the United Kingdom a more attractive place for global investors to invest their money. When inflation falls too much it is a sign that economic growth is slowing down. In this scenario, the Bank of England will consider lowering interest rates to reduce credit, so that companies will borrow more to invest in projects that generate growth.
Published data measure the health of the economy and can affect the value of sterling pound. Indicators such as GDP, manufacturing and services PMI and employment can influence the direction of the sterling pound.
Another important fact that is published and affects the pound sterling is the commercial balance. This indicator measures the difference between what a country earns with its exports and what you spend on imports during a given period. If a country produces highly demanded export products, its currency will benefit exclusively from the additional demand created by foreign buyers seeking to buy those goods. Therefore, a positive net trade balance strengthens a currency and vice versa in the case of a negative balance
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.
