- The British pound recorded its highest level in two weeks above 1.2400 against the US dollar after US President Trump supported the immediate discounts of interest rates from the Federal Reserve.
- It is widely expected that the Federal Reserve will keep the interest rates fixed on Wednesday.
- The data of the Global Procurement Manager Index (S&P) in the United Kingdom for December remains amazingly optimistic.
The British pound rose against its main counterparts on Friday, as the initial data of the S & P Global/CIPS in the United Kingdom for the month of January came amazingly stronger than expected. The agency stated that the complex purchasing directors index expanded at a faster rate to 50.9 than 50.4 in December. Economists expected the purchasing managers index to grow hard, with data reaching 50.0. Strong growth in the Purchase Procurement Manager Index came from the strong commercial activity in services as well as the manufacturing sector.
Although the total commercial activity is still strong in January, S& P Global analysts have shown fears about the low demand for employment amid low prices and concerns about business prospects.
It is unlikely that the strong purchasing managers index numbers reduce the market expectations that the Bank of England will reduce interest rates by 25 basis to 4.5 % at the Monetary Policy meeting in February. These cautious bets feed on inflation data, weak employment and poor families’ spending.
On the financial level, Treasury Minister Rachel Reeves said in an interview with the Wall Street Journal on the sidelines of the World Economic Forum in Davos that it is ready to announce new measures in the budget update on March 26 to ensure that the financial rules were met and Reeves announced in the autumn budget that the government will depend on funding Foreign investment only.
British pound price today
The table below shows the rate of changing the pound (GBP) against the main currencies listed today. The pound was the strongest against the US dollar.
| US dollar | euro | GBP | JPY | Canadian | Australian dollar | New Zealand dollar | Swiss franc | |
|---|---|---|---|---|---|---|---|---|
| US dollar | -71% | -59% | -0.22% | -0.35% | -58% | -65% | -0.31% | |
| euro | 0.71% | 0.13% | 0.51% | 0.37% | 0.15% | 0.07% | 0.41% | |
| GBP | 0.59% | -0.13% | 0.39% | 0.23% | 0.00% | -07% | 0.27% | |
| JPY | 0.22% | -51% | -0.39% | -0.14% | -0.39% | -0.45% | -0.10% | |
| Canadian | 0.35% | -37% | -0.23% | 0.14% | -0.24% | -0.30% | 0.05% | |
| Australian dollar | 0.58% | -0.15% | -0.00% | 0.39% | 0.24% | -06% | 0.26% | |
| New Zealand dollar | 0.65% | -07% | 0.07% | 0.45% | 0.30% | 0.06% | 0.34% | |
| Swiss franc | 0.31% | -0.41% | -27% | 0.10% | -05% | -26% | -0.34% |
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 the British pound from the left column and move along the horizontal line to the US dollar, the percentage of the change in the box will represent the pound (the basis)/US dollar (price supply).
The British pound revives its highest level in two weeks against the US dollar, as it calls Trump to immediate discounts in interest rates
- The British pound jumps over the level of 1.2400 against the US dollar on Friday. The sterling/US dollar pair increased as the US dollar approached the weekend with the highest losses in almost two months. The US dollar index (DXY), which tracks the value of the American currency against six main currencies, decreased to nearly 107.60, which is the lowest level in more than a month after US President Donald Trump indicated the need for immediate discounts in interest rates by the Federal Bank . Federal Reserve (Federal Reserve) in his comment before the World Economic Forum (WEF) on Thursday.
- “As oil prices drop, I will demand that interest rates be reduced immediately, and likewise it must decrease all over the world,” Trump said. His comments came a few days before the announcement of the first monetary policy meeting of the Federal Reserve Bank on January 29, in which he is sure to announce a temporary stop in the policy reduction course and keep interest rates unchanged in the range of 4.25 % -4.50 %. %, According to the CME Fedwatch tool.
- Trump’s invitation to reduce interest rates is unlikely to immediately affect the Federal Reserve, an independent body devoted to achieving its agenda of maintaining full employment with price stability.
- In Friday’s session, the US dollar will be affected by the initial data of the S&P Global Procurement Directors Index for January, which will be published at 14:45 GMT. It is expected that the data managers index data will appear that the total private business activity in the United States remained almost constant during the month.
Technical Analysis: The pound rises above the level of 1.2400
The British pound rose above the level of 1.2400 against the US dollar on Friday. The GBP/USD dollar pair has risen after penetrating over the SIA moving average for 20 days (EMA), which is trading around the 1.2363 region.
The relative power index is bounced over 14 days to approximately 50.00 of 20.00-40.00, indicating that the declining momentum has ended, at least at the present time.
Looking at the bottom, the lowest level on January 13 will be at 1.2100 and the lowest level in October 2023 at 1.2050 as major support areas. On the upper side, the moving average for 50 days will be near 1.2515 as a major resistance.