- Poundsterling is trading for more than 1.2400, as investors are focusing on US PCE inflationata in December.
- The threat of tariffs between President Trump's BRICS and his North American colleagues has increased USD's safe home appeal.
- Investors hope that BOE will resume the interest rate cut cycle on Thursday.
Pound Stirling (GBP) is a Friday European session, trading a strict range slightly exceeding the 1.2400 major support for US dollars (USD). After the US (US) President Donald Trump imposes 25 % tariffs from Saturday and repeated his intention to impose 100 % of BRICS if you have tried it, the US dollar safe home demand increased on Thursday. Despite this, the GBP/USD pair stable US dollar is replaced with a new currency of international trade.
The US dollar index (DXY), which tracks the value of a green back to six major currencies, conducts a 108.20 weekly expensive trading.
According to his social media platform Truthsocial, Mr. Trump said, “We do not return other currencies to create new BRICS currencies and replace powerful US dollars from these monster -related countries. If you do, you will be able to replace the US dollar or anywhere else.
Market participants believe that President Trump's higher tariffs are inflation for the US economy, which may forced the federal preparation system (Fed) to maintain long interest rates at the current level. I think. On Wednesday, the Fed announced the suspension of the easing policy cycle and continued to change the change rate in the range of 4.25 % to 4.50 %.
According to the Fed's Jerome Powell, the Central Bank officials said, “True progress of inflation or at least the weakness of the labor market,” it would be appropriate to adjust the monetary policy.
In the Friday session, investors will pay close attention to the US consumption expenditure price index (PCE) data in December, and will be released to 13:30 GMT. The Fed priority inflation gauge core PCE inflation is estimated to have grown at a pace of 0.2 % from 0.1 % to 0.2 % in November, and the annual value has steadily increased by 2.8 %.
Today's US dollar price
The following table shows the US dollar (USD) change rate for today's listed currency. The US dollar was the strongest for the euro.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | Chf | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.29 % | 0.15 % | 0.28 % | 0.03 % | 0.04 % | -0.11 % | 0.18 % | |
| EUR | -0.29 % | -0.15 % | -0.02 % | -0.26 % | -0.26 % | -0.41 % | -0.11 % | |
| GBP | -0.15 % | 0.15 % | 0.12 % | -0.11 % | -0.12 % | -0.26 % | 0.03 % | |
| JPY | -0.28 % | 0.02 % | -0.12 % | -0.25 % | -0.22 % | -0.39 % | -0.08 % | |
| CAD | -0.03 % | 0.26 % | 0.11 % | 0.25 % | -0.00 % | -0.14 % | 0.15 % | |
| AUD | -0.04 % | 0.26 % | 0.12 % | 0.22 % | 0.00 % | -0.14 % | 0.15 % | |
| NZD | 0.11 % | 0.41 % | 0.26 % | 0.39 % | 0.14 % | 0.14 % | 0.30 % | |
| Chf | -0.18 % | 0.11 % | -0.03 % | 0.08 % | -0.15 % | -0.15 % | -0.30 % |
The heat map shows the changing rate of major currencies to each other. Basic currencies are selected from the left row, and the quota is selected from the top line. For example, if you select US dollars from the left row and move to Japanese yen along the horizon, the change rate displayed in the box represents USD (base)/JPY (quote).
Daily digest market Mover: Pound Stirling is again exposed to pressure on its major colleagues
- Pound Stirling is under pressure on major friends on Friday, and investors are focusing on the Financial Policy on England Bank (BOE) next Thursday. Traders are convinced that BOE will resume the cycle to extend the policy and reduce interest rates to 25 Basis points (BPS) by 4.5 %.
- BoE's monetary policy guidance can be interrupted because recent inflation indicators show signs of deceleration.
- Participants in the financial markets are setting prices for three interest rates from BoE this year, while reducing the demand of workers and weakening business trust. This is because the employer contributes to the national insurance (NI) released by Prime Minister Rachel Reeves on the fall budget.
- However, Reeves is trying to cool the business owner's dissatisfaction by hiring important measures to promote growth. On Wednesday, Leves has pledged to support the expansion of Heathrow Airport in London and to remove the “stuffy and unpredictable” regulations to increase productivity. She was also confident in building a better trade relationship with the United States under the guidance of Donald Trump.
Technical analysis: Poundster ring holds the key for 20 days
Pound Stirling has received 1.2400 major support for US dollars since Monday. GBP/USD pairs are still strong because they hold the 20 -day index transfer average (EMA). However, the 50 -day EMA near 1.2510 remains a major barrier for Stalingbuds.
The 14-day relative intensity index (RSI) vibrates in the range of 20.00-40.00, suggesting a sideways tendency.
Looking down, the lowest value of 1.2100 LOW on January 13 and 1.2050 in October 2023 will function as a major pair of support zones. As an advantage, the high price of 1.2607 on December 30 functions as an important resistance.
