- UK retail sales defeated expectations, increasing by 1.7 % in January.
- The US S& P Global Services decreases to shrink and withdraw the compound index.
- The price of traders in fewer cuts in BOE prices, support more digestive/USD.
GBP/USD records Fridays during the North American session after the SMA SMA test at 1.2658. Good economic data from the UK (UK) prompted the pair towards its highest level on an annual basis (YTD) from 1.2678 before settling in the current instant prices. The pair exchanges hands near 1.2660.
The pound settles near 1.2660 after hitting YTD levels from 1.2678
S&P Global showed that trade activity in the United States (the United States) has weakened more, despite the February manufacturing manufacturing PMI It rose to 51.6, up from 51.2, exceeding predictions. However, the hopes of the services index disappointed, as it fell in the recession lands from 52.9 to 49.7, prompting the compound index to 50.4 out of 52.7.
In the United Kingdom, retail sales in January exceeded 0.3 % estimates, and expanded 1.7 % illiterate. In the twelve months to January, they decreased from 2.8 % to 1 %, higher than 0.6 %. Other data showed that the S&P Flash PMI was mixed, with the manufacturing index contract while the services sector improved from 50.8 to 51.1.
UK data that shows mixed readings will make the BOE Bank (BOE) more difficult. When the bank started a reduction course, inflation and wages rose. Thus, more GBP/USD is seen after the number of traders does not exceed interest rate cuts this year.
GBP/USD price expectations: Technical expectations
Looking at the background, the decrease in the GBP/USD pair can be considered an opportunity for buyers to enter at a better price. However, the decrease of less than 1.2600 moves slightly to the negative side, where the sellers will challenge 1.2549, before the SMA test for 50 days at 1.2459.
It should be noted that the RSI Index (RSI) is mixed, despite standing in the upward lands, and aims to the bottom. Therefore, expect a leg to occur to the number before buyers re -engage and pay prices up.
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 resulting 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.
2025-02-21 15:21:00