- GBP/USD publishes modest gains about 1.2585 in the early Asian session on Monday.
- Retail sales in the United States decreased by 0.9 % in January, that is, weaker than expected.
- Investors are preparing for the UK labor market data and inflation data in the level price index, which is scheduled to be later this week.
the GBP/USD pair He trades with light gains near 1.2585 during the early Asian session on Monday. The two main couple are at a higher stage of the report of the optimistic GDP in the United Kingdom (GDP) and the weakest retail sales data. The US market will be closed on Monday to monitor the President’s Day.
Retail sales in the United States recorded the largest decrease in nearly two years, leading to a decrease in Greenback. Retail sales decreased by 0.9 % in January, after an increase of 0.7 % in December, the Ministry of Commerce Statistics Office said on Friday. This number came weaker than estimating a decrease of 0.1 %. On an annual basis, retail sales increased by 4.2 % during the same period.
The best GDP is expected in the UK some support to the British pound (GBP). The British economy grew 0.1 % QOQ in the fourth quarter (Q4) of 2024, overcoming expectations, according to a preliminary estimate from the UK National Statistics Office (ONS) on Thursday.
Traders will monitor labor market data in the United Kingdom Consumer price index (CPI) inflation data, which will be published on Tuesday and Wednesday, respectively. These reports can provide some hints on whether the BOE Bank will reduce its attention Rates Again at the March meeting.
Stering questions and answers to the pound
The British pound (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most trading of foreign unit (FX) in the world, as it represents 12 % of all transactions, with an average of 630 billion dollars a day, according to 2022 data. Their main trading pairs are GBP/USD, also known as “Cable”, Which represents 11 % of FX, GBP/JPY, or “dragon” as is known by merchants (3 %), and EUR/GBP (2 GBP (2 %). The pound sterling was released by the Bank of England (Bank of England).
The only most important factor that affects the value of the British pound is the monetary policy decided by the Bank of England. The Bank of England is based on its decisions on whether it has achieved its primary goal of “stability in prices” – a fixed inflation rate of about 2 %. Its primary performance to achieve this is to adjust interest rates. When inflation is very high, the Bank of England will try to make interest by raising interest rates, making it more expensive for people and companies to reach credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to stop their money. When inflation decreases significantly, economic growth slows down. In this scenario, the Bank of England will consider reducing interest rates to licensing credit so that companies borrow more to invest in growth generation projects.
Data affects the health of the economy and can affect the value of the pound sterling. Indicators such as gross domestic product, manufacturing, services, and employment can affect the GBP direction. The strong economy is useful for sterling. Not only attracts more foreign investments, but it may encourage the Bank of England to set interest rates, which will enhance the GBP directly. Otherwise, if the economic data is weak, it is possible that the pound sterling will fall.
Issuing another important data for the British pound is the balance of trade. This indicator measures the difference between what a country gains from its exports and what it spends on imports during a certain period. If a country produces very desirable exports, its currency will benefit from the additional demand created from foreign buyers who seek to buy these goods. Therefore, the positive and positive trade balance enhances the currency and vice versa to achieve a negative balance.
2025-02-17 00:58:13