- The British pound fell from its highest level during the day against the US dollar, although some investors see that the agenda of customs tariffs of Trump is a tactic to conclude deals in a better position.
- Optimistic retail sales are expected to affect the UK, high inflation, and strong wages growth on England Bank’s stakes.
- Investors are waiting for the initial data of the American Purchase Manager Index from Standard & Poor’s global for the month of February.
The pound fell (GBP) after it recorded its highest level in two months near 1.2680 against the US dollar during the trading hours in North America on Friday. The GBP/USD pair abandons his daily gains and turns negative with the US dollar’s bounce. The US dollar index (DXY), which tracks the value of the dollar for six major currencies, has recovered to nearly 106.65 of its lowest level since the beginning of the year (YTD) around 106.30, which he recorded on Thursday.
On Thursday, the US dollar fell, with its risk bonus decreased, with investors expected that the agenda of definitions developed by US President Donald Trump will not lead to a great slowdown in the global economy.
So far, President Trump has imposed 25% definitions on aluminum and steel and 10% on all imports from China. He threatened to impose a 25% tax on cars, electronic chips, medicines, and to introduce mutual definitions without any details or schedule. Investors expected Trump to announce a set of tariffs soon after returning to the White House in January, based on his comments in the election campaign, forcing them to believe that Trump’s policies of tariffs are just a “tactic” to get the upper hand while negotiating with his allies.
At the level of monetary policy, Federal Reserve officials (Fed) were directing a restricted position on monetary policy. On Thursday, Federal Reserve Governor Adriana Kogarpar said that the central bank must maintain borrowing rates “in place” for a period “some time”, noting that the net impact of new economic policies is “very certain” and will depend on “details”.
Summary of daily market engines: The pound sterling shows a different performance in exchange for its counterparts
- The British pound shows a contrasting performance against its main counterparts on Friday after the issuance of strong retail sales data in the United Kingdom for the month of January. The National Statistics Office (ONS) reported that retail sales, a main measure of consumer spending, rose at a strong pace of 1.7% per month after shrinking by 0.6% in December, which was modified to the bottom of -0.3%. Economists expected the consumer spending scale to grow at a moderate pace of 0.3%.
- Retail sales on an annual basis increased by 1%, outperforming the estimate of 0.6%, but it remained less than 2.8%growth that was recorded in 12 months to December.
- Optimistic retail sales data is expected to force those trading to reduce their bets that BOE will reduce interest rates again at the March meeting. England Bank’s Bets of Technician have already been challenged by the hottest Consumer Prices Index Report (CPI) expected for January and strong wage data in the three months ending in December.
- However, investors are unlikely to become more optimistic about British currency prospects, as England Governor Andrew Bailey is still concerned about economic prospects this year. Earlier this week, Bailey warned that economic growth is expected to remain slow. At the monetary policy meeting earlier this month, the Bank of England reduced its expectations for the annual GDP (GDP) to 0.75%.
- At the same time, the initial Puritage Directors Index (PMI) data from Standard & Poor’s International/CIPS for February in line with estimates. The pillar PMI index expanded at a slower pace to 50.5 from 50.6 in January. The activities in the manufacturing and services sectors have shrunk and expanded, respectively, at an unexpectedly faster pace.
Sterling pounds the price today
The schedule below shows the percentage of change in a pounds (GBP) for the main currencies listed today.
| US dollar | euro | GBP | JPY | CAD | Aud | Nzd | Chf | |
|---|---|---|---|---|---|---|---|---|
| US dollar | 0.26 % | 0.20 % | 0.56 % | 0.05 % | 0.31 % | 0.15 % | 0.22 % | |
| euro | -26 % | -07 % | 0.30 % | -0.21 % | 0.05 % | -0.12 % | -05 % | |
| GBP | -0.20 % | 0.07 % | 0.38 % | -0.14 % | 0.10 % | -05 % | 0.02 % | |
| JPY | -56 % | -0.30 % | -0.38 % | -0.47 % | -0.24 % | -0.41 % | -0.34 % | |
| CAD | -05 % | 0.21 % | 0.14 % | 0.47 % | 0.24 % | 0.09 % | 0.15 % | |
| Aud | -0.31 % | -05 % | -0.10 % | 0.24 % | -0.24 % | -0.15 % | -0.10 % | |
| Nzd | -0.15 % | 0.12 % | 0.05 % | 0.41 % | -0.09 % | 0.15 % | 0.07 % | |
| Chf | -0.22 % | 0.05 % | -02 % | 0.34 % | -0.15 % | 0.10 % | -07 % |
The thermal map shows the percentage of changes in the main currencies against each other. The basic currency is chosen from the left column, while the corresponding currency is chosen from the top row. For example, if you choose a pounds from the left column and move along the horizontal line to US dollars, the percentage of the change offered in the box will represent the GBP (the basis/pricing currency)/USD (quotation currency).
Technical analysis
The British pound recorded its highest level in two months against the US dollar near 1.2680 on Friday. The GBP/USD pair after penetration over the Fibonacci correction level strengthens 38.2% from the highest level at the end of September to the lowest level in mid -January, which coincided with the SIA moving average (EMA) for 100 days, around 1.2620.
The relative strength index (RSI) stands for 14 days above 60.00. The bullish momentum is likely to fade if the RSI (14) index fails to maintain this level.
Looking at the bottom, the lowest level on February 11 will work at 1.2333 as a major support zone for the husband. On the upper side, the Fibonacci correction level will work 50% at 1.2767 as a major resistance area.
2025-02-21 13:59:24