- Libra Sterling gains almost 1.2925 against the US dollar, while investors ignore the fresh tariffs of US President Trump into cars.
- Fed Kashkari supports leaving interest rates at its current level for a longer period of time.
- UK Reeves reduces social benefits and remains determined to its fiscal agenda.
Libra Sterling (GBP) is strongly recovering at almost 1.2925 against the US dollar (USD) during the European trading hours on Thursday. A pair of GBP/USD will bounce back after a slight remedial move in the last five business days from a four -month maximum around 1.3000. The cable will rebound like downloading the US dollar, although the President of the United States (US) Donald Trump has deposited 25% of tariffs on all car imports and their components.
The US dollar index (DXY), which monitors the Greenback value against six main currencies, corrected almost 104.30 from the three -day maximum around 104.70 published earlier on the day.
In theory However, the US dollar is falling because market participants expect higher fees to significantly affect US economic growth. The impact of higher tariffs is carried by American importers who pass them on to consumers. Such a scenario will reduce the purchasing power of households.
During the European trade hours in an interview with Bloomberg TV, he said that our nation said in an interview with Bloomberg TV that our nation “does not store retaliatory tariffs” because he does not want to “escalate the situation”, Rachel Reeves. Reeves added that she would like to see that “tariffs between countries are falling” because “business friction” makes the economic growth more difficult “.
On the queue of monetary policy, President of Bank Minneapolis Federal Reserve (Fed) Neel Kashkari led that the central bank should maintain interest rates in the current range of 4.25%-4.50%. “Policy uncertainty complicates the work of the Fed,“Kashkari said Detroit Lakes Chamber on Wednesday at the Detroit Lake Chamber. ratesAlthough its consequences on economic growth will support the alleviation of monetary policy. Together, these forces are “kind of washing”, Kashkari added.
In the future, investors will focus on the data index of the US price index (PCE) in the US for February, which will be published on Friday. The impact of inflation data is expected to be limited to the interest rate view Because the fate of the Fed’s monetary policy is bound to the results of Trump’s economic policy.
Daily Digest Market Movers: Libra Sterling
- On Thursday, the pound of Sterling is traded against its main peers after most of Wednesday’s losses powered by finer than the expected Great Britain (UK) of the Consumer Price Index (CPI) for February and a reduction in social security benefits announced by Chancellor Reeves in a spring statement.
- The CPI report in the UK has shown that inflation pressures increased more slowly than the expected pace due to slight rise in prices of clothing and shoe prices. The headline and the main CPI increased by 2.8% and 3.5% year -on -year. Inflation of services, which is closely monitored by Bank of England (BOE) officials, was constantly increasing by 5%. Cooling inflation is poorly looking forward to the pound of Šterlinky because it can drive bets Boe Dovish.
- As I promised, Chancellor Reeves did not announce any tax increase, repeated fiscal rules as unegeothabitual and confirmed an increase in defense spending by 2.2 billion GBPs at uncertainty around the Ukrainian War. Reeves said it would re -build a fiscal buffer almost £ 10 billion and say that changes in social security expenses would save 4.8 billion GBP.
- Reeves confirmed a significant revision of the direction of gross domestic product (GDP)
- The growth rate for a year and stated that the Business Responsibility Office (Fig) decreased to 1%. However, the fiscal guard dog increased growth forecasts for the next four years.
- In the future, investors will focus on British data Q4 GDP and retail sales for February, which will be published on Friday.
British pound price today
The table below shows the percentage change in the British pound (GBP) against the main currencies. The British pound was the strongest against the Japanese yen.
| USD | Eur | GBP | Jy | CAD | Auditorium | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.12% | -0.23% | 0.20% | 0.15% | -0.11% | -0.20% | 0.08% | |
| Eur | 0.12% | -0,13% | 0.31% | 0.25% | -0.03% | -0.10% | 0.18% | |
| GBP | 0.23% | 0.13% | 0.45% | 0.38% | 0.11% | 0.00% | 0.32% | |
| Jy | -0.20% | -0,31% | -0.45% | -0.05% | -0,33% | -0.42% | -0.12% | |
| CAD | -0.15% | -0.25% | -0,38% | 0.05% | -0.26% | -0.35% | -0.06% | |
| Auditorium | 0.11% | 0.03% | -0.11% | 0.33% | 0.26% | -0.07% | 0.20% | |
| NZD | 0.20% | 0.10% | 0.00% | 0.42% | 0.35% | 0.07% | 0.29% | |
| CHF | -0.08% | -0.18% | -0.32% | 0.12% | 0.06% | -0.20% | -0.29% |
The heat map shows the percentage changes in the main currencies against each other. The basic currency is selected from the left column, while the currency of the menu is selected from the upper row. For example, if you choose a British pound from the left column and move along the horizontal line to the US dollar, the percentage change displayed in the box will be GBP (Base)/USD (Quote).
Technical analysis: pound of rebounds from 20 -day EMA
The pound of Šterlinky against the US dollar after finding that the purchase interest near the 20 -day exponential gliding average (EMA), which trades around 1.2873. A few GBP/USD is trying to stabilize around 61.8% retracement Fibonacci, brought from late September to mid -January at 1.2930.
The 14 -day relative force index (RSI) is cooled at almost 60.00 after turning above 70.00. If fresh bull momentum came into action if RSI restores the way up over 60.00.
Looking down will be 50% retracement fibonacci to 1.2770 and 38.2% retracement fibonacci to 1.2615 to act as key support zones for a couple. On the other hand, October 15 will function as a key zone of resistance.
Economic indicator
Basic Expenditure on Personal Consumption – Price Index (year -on -year)
Basic Personal Consumption Expenditure (PCE) issued US Economic Analysis Office Monthly measures changes in the prices of goods and services purchased by consumers in the United States (USA). The PCE price index is also a preferred measure of inflation of the federal reserve system. Reading between the year compares the prices of goods in the reference month for the same month of the previous year. Basic reading excludes so -called volatile food and energy components to provide more accurate price pressure measurements. “In general, high reading for the US dollar (USD), while low reading is bearish.
