- GBP/USD falls from a daily height of 1,2969 in the midst of a risk-off mood and sustained US dollar strength.
- Boe and bold flag uncertainty, both of which cite Trump’s duty as a risk of global growth and inflation prospects.
- Dealers will see key inflation data next week, where UK CPI and US Core PCE are likely to shape the expectations of interest rates.
Pound Sterling (GBP) drops approx. 0.29% against the US dollar (USD) Friday to end the week unchanged after major central banks contained monetary policy decisions led by the Federal Reserve (Fed) and Bank of England (Boe). At the time of writing, GBP/USD is trading on 1,2931 after hit a daily top of 1,2969.
Sterling falls 0.29%set to end the week flat after Dovish Fed and Boe Tone
The market atmosphere remains condescending, as depicted by the United States (US) shares that put losses while Greenback remains bids. On Thursday, Boe kept interest rates unchanged and said there is uncertainty about the future as it repeated bold -president Jerome Powell’s words. Both decision -makers mentioned US President Donald Trump’s tariffs against his partners as a matter.
Kenneth Broux, head of business research in Societe General, said, “There is just a general feeling of caution. We don’t really know what the consequences of the trade war for growth and inflation.”
Dealers had circled April 2 as a decisive date for the adoption of US mutual tariffs. Most analysts estimate that the trade war can spur a slowdown in the global economy.
The lack of financial data releases and the beginning of the bold parade leaves retailers leaning on decision makers. New York Fed John Williams said Fed’s 2% inflation target is not ready for debate, adding that the current modestly restrictive monetary policy is “absolutely appropriate” and it is difficult to know how the economy will work.
Chicago’s fat, Austan Goolsbee, said that when there is a lot of uncertainty, you have to wait for things to clean up.
Next week, the British economic dock will have the Consumer Price Index (CPI) and Spring Budget Declaration. Across the pond, Fed’s preferred inflation meter, the central personal consumption expenses (PCE) price index, will also become the eye.
GBP/USD -Price forecast: Technical View
The GBP/USD pair is set to end the week almost flat, yet it has advanced steadily since the climbing over the 1,2900 handle. Nevertheless, the couple printed two Bearish days and hit a four-day low on 1,2927.
In the short term, Momentum favors sellers, as depicted by the relative strength index (RSI), which aims lower despite being on Bullish territory. This opens the door to a withdrawal and dealers could pull GBP/USD to challenge on March 10 at 1,2861. If surpassed, the next stop is the 200-day SMA of 1,2797. On the other hand, if buyers drive the exchange rate past 1.3000, the next resistance would be November 6th top of 1,3047.
British Pound Price This Week
The table below shows the percentage change of the British Pound (GBP) against listed larger currencies this week. The British Pound was the strongest against the Australian dollar.
| USD | EUR | GBP | JPY | Cad | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.48% | 0.06% | 0.03% | -0.23% | 0.95% | 0.14% | -0.25% | |
| EUR | -0.48% | -0.53% | -0.85% | -0.70% | 0.32% | -0.35% | -0.75% | |
| GBP | -0.06% | 0.53% | 0.02% | -0.38% | 0.85% | 0.17% | -0.28% | |
| JPY | -0.03% | 0.85% | -0.02% | -0.25% | 0.71% | 0.16% | -0.40% | |
| Cad | 0.23% | 0.70% | 0.38% | 0.25% | 0.97% | 0.37% | -0.56% | |
| Aud | -0.95% | -0.32% | -0.85% | -0.71% | -0.97% | -0.65% | -1.06% | |
| NZD | -0.14% | 0.35% | -0.17% | -0.16% | -0.37% | 0.65% | -0.40% | |
| CHF | 0.25% | 0.75% | 0.28% | 0.40% | 0.56% | 1.06% | 0.40% |
The heating card shows percentage changes to larger currencies against each other. The base currency is selected from the left column while the quote currency is selected 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 change represents in the GBP (Base)/USD (quote) box.