- The British pound decreases in the wake of the inflation report in the United Kingdom the hottest of January.
- Boe’s Bailey expects that the rise in inflation will not be fixed in nature.
- US President Trump threatens to impose a 25 % tariff fees on cars, semiconductors, and pharmaceutical preparations.
The British pound slides to approximately 1.2580 against the US dollar (USD) at the North American session on Wednesday. The GBP/USD pair weakens the US dollar’s gains, as the US dollar index (DXY) increased to nearly 107.20, before the lectures of the Federal Open Market Committee (FOMC) for the January meeting, which will be published at 19: 00 GMT.
Investors will focus on FOMC minutes for the January decision to obtain signals about the time period Federal Reserve (Fed) will keep interest rates fixed in the range of 4.25 % -4.50 %. At the January meeting, the Federal Reserve announced a temporary stop in the cash expansion course after cutting attention Rates By 100 basis points (BPS) in the last three meetings of 2024.
On Tuesday, Mary Dali, President of San Francisco Bank, Federal Reserve, Mary Dali, preferred the “restricted” monetary policy position to see a continuation of progress in the direction of inflation.
Meanwhile, renewed fears of the customs tariff carried out by the President of the United States (United States), Donald Trump, provided some support to the US dollar. President Trump said on Tuesday that he intends to impose a 25 % tariff on car imports, semiconductors and pharmaceutical preparations, which may increase more during the next year. This can lead to slowdown in the global economy.
Digest Market Mark: The pound sterling weakens, as BOE expects to increase inflation temporarily
- The British pound weakens against its main peers, although the United Kingdom (UK) Consumer price index The (CPI) report showed for the month of January that inflationary pressure is accelerating at a faster pace than expected. In the 12 months to January, the main CPI increased by 3 %, faster than 2.8 % estimates and December reading 2.5 %. In the same period, the basic consumer price index – which excludes volatile ingredients from food, energy, alcohol and tobacco – grew by 3.7 %, as expected, faster than the previous 3.2 % reading.
- CPI inflation deviation in the monthly month at a slower pace of the number 0.1 %, compared to growth 0.3 % in December. Economists expected the main inflation to empty this pace this month. Inflation in the service sector, which is closely followed by England Bank officials (Bank Boy), accelerated to 5 % from 4.4 % in December.
- The effect of high inflation data is unlikely to be positive in order to know the British currency. Bi The officials have already continued in the most recent critical political statement that price pressures may rise in the short term due to the high energy prices before returning to its course by 2 %.
- On Monday, Andrew Andrew Billy Governor also said in an interview with Busonsline that the impact of the expected increase in inflation will not be “fixed”, and still sees “the gradual inflation that occurs.” Billy added that a “slow state” of the economy is likely to “act against inflation,” Reuters said. However, an increase in inflationary pressures is expected to be restricted by the Bank of England to reduce more cash.
- To move forward, investors will focus on retail sales data in the United Kingdom for January and the data of the S& PLOBAL/CIPS index for the initial purchase of February, which will be issued on Friday.
British pound price today
The table below shows the percentage of change in the British pound (GBP) against the main currencies listed today. The British pound was the strongest against the euro.
| US dollar | euro | GBP | JPY | CAD | Aud | Nzd | Chf | |
|---|---|---|---|---|---|---|---|---|
| US dollar | 0.16 % | 0.14 % | -0.20 % | 0.09 % | 0.01 % | -0.21 % | -02 % | |
| euro | -16 % | -0.03 % | -0.35 % | -07 % | -16 % | -37 % | -0.19 % | |
| GBP | -0.14 % | 0.03 % | -0.34 % | -05 % | -0.13 % | -0.34 % | -16 % | |
| JPY | 0.20 % | 0.35 % | 0.34 % | 0.27 % | 0.19 % | -04 % | 0.16 % | |
| CAD | -0.09 % | 0.07 % | 0.05 % | -0.27 % | -08 % | -0.29 % | -0.12 % | |
| Aud | -01 % | 0.16 % | 0.13 % | -0.19 % | 0.08 % | -0.22 % | -0.03 % | |
| Nzd | 0.21 % | 0.37 % | 0.34 % | 0.04 % | 0.29 % | 0.22 % | 0.19 % | |
| Chf | 0.02 % | 0.19 % | 0.16 % | -16 % | 0.12 % | 0.03 % | -0.19 % |
The heat map shows the percentage changes in the main currencies against each other. The basic currency is chosen from the left column, while the quotation currency is chosen from the top row. For example, if you choose the British pound from the left column and move along the horizontal line to the US dollar, the percentage offered in the box will represent the GBP (Base)/USD (quotation).
Technical Analysis: The pound faces pressure near EMA for 100 days
The British pound returns to the main level at 1.2600 for US dollar In the trading hours in North America on Wednesday. the GBP/USD pair The pressure while trying to collapse over a 38.2 % alternative to Fibonacci, which coincides with the 100 -day SIA moving average (EMA), is around 1.2620.
The 24 -day relative index (RSI) is struggling to keep it over 60.00. The bullish momentum will fade if the relative strength index (14) fails to maintain it above this level.
Looking down, the February 3 level of 1.2250 will serve as a major support zone for the husband. On the upper side, 50 % Fibonacci The decline will be at 1.2767 as a major resistance area.
2025-02-19 13:44:49