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Rapid height for GBP/USD It was driven by the investor’s confidence that the United States would be the main country that struck the definitions. However, the sales in the European stock markets have returned the starting point. Let’s discuss it and make a trading plan.
The article covers the following topics:
Main meals
- Britain faces a 10 % tariff, which is the lowest among major economies.
- The Bank of England will slowly lower prices than federal reserves.
- FTSE 100 decreased to a sterling pound collapse.
- GBPUSD failed to break 1.3025 is a sign of sale.
Weekly basic expectations for Bound Steling
It will become the last first! The White House tariff shocked the financial markets, and the continued turmoil. Logical, the more strictly Donald Trump works towards a country, the more its currency. However, the yuan and yen are strengthened against the US dollar, although China and Japan were among the most difficult tariffs of the import of the United States – 34 % for China and 24 % for Japan. On the other hand, Britain’s tariff appears to be 10 % simple, however GBP/USD I lost all the initial edge.
The United States is the largest market for British goods, and although customs tariffs are low compared to others, it will harm the UK economy. London will not plan revenge – Chancellor Rachel Reeves believes it is better to wait and find out how others respond. The Kiir Starmer government is betting on negotiations, especially since Donald Trump has not ruled out the cancellation of definitions if the United States obtained a “huge” deal.
Foreign trade dynamics in the United Kingdom
Source: Bloomberg.
The pound initially benefited from the announcement of the White House tariff, as investors assumed that the United States would suffer more. American stocks were expected to sell faster than others, and the Federal Reserve would need to reduce prices strongly to protect the American economy from recession. The derivatives now expect that the Jerome Powell team will reduce borrowing costs by 100 basis points in 2025, an increase of 75 basis points before “Tahrir Day” in America.
Meanwhile, the futures market market expects that the rate of re-ribo in the Bank of England will decrease to 3.25 %-a reduction of three quarters of a point-which, in theory, support GBP/USD. But in today’s world of protectionism and commercial wars, currency pair movements depend on the broader asset dynamics.
The pound increased against the dollar to its highest levels since early October from fears of a huge S&P 500. This happened – the wide stock index witnessed the worst diving daily since the epidemic – but then European stocks achieved great success.
FTSE 100 weekly performance
Source: Bloomberg.
British companies that are actively trading with China, such as Standard Charterd and HSBC, have been under pressure. Other banks, such as Barclays and Natest, also fell amid economic concerns and concerns about aggressive cash dilution by the Bank of England. As a result, FTSE 100 is on the right path for the worst weekly performance since 2023, which leads to pressure on the pound.
GBPUSD weekly trading plan
The British pound is a pro-league currency-it cannot ignore the exacerbation of global economic prospects. Long situations on GB/Pusd It opened from 1.2965 well, but it’s time to reassess the situation. If the husband fails to rise above 1.3025 in the coming days, it is time to sell it.
This expectation depends on an analysis Basic factorsIncluding official data from financial institutions and organizers, various geopolitical and economic developments, and statistical data. Historical market data is also.
GBPUSD price scheme in real time
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