Trading & Financial News
No Result
View All Result
Friday, April 18, 2025
  • Login
  • Economy
  • Markets
  • Forex News
  • Investing
  • Stock Trading
  • Crypto
Subscribe
Trading & Financial News
  • Economy
  • Markets
  • Forex News
  • Investing
  • Stock Trading
  • Crypto
No Result
View All Result
Trading & Financial News
No Result
View All Result
Home Forex News

Pound is not afraid. Forecast as of 26.07.2023

by Tradinghow
July 27, 2023
in Forex News
A A
0
Pound is not afraid. Forecast as of 26.07.2023
152
SHARES
1.9k
VIEWS
Share on FacebookShare on Twitter


2023.07.26 2023.07.26
Pound is not afraid. Forecast as of 26.07.2023

Dmitri Demidenkohttps://www.litefinance.org/blog/authors/dmitri-demidenko/

logo

Although the overall economic situation is not positive, the UK economy isn’t doing that badly. Besides, there is a divergence in the monetary policy of the Bank of England and the Fed. Therefore, the GBPUSD might go up above 1.3. Is it real? Let us discuss the Forex outlook and make up a GBPUSD trading plan.

Weekly fundamental pound forecast

It might seem that the slowdown in inflation and weak UK PMI data should have supported the GBPUSD downtrend. Nobody expected the pair to go up above 1.3 soon. However, if you predict the market, you should always look at many sides. The slowdown in consumer price growth can be interpreted as a success for the management of the Bank of England, which is positive for the currency. Purchasing managers’ indexes, on the other hand, are a product of the perceptions of companies that, in the current uncertainty, cannot be good.

First, let’s look at the current environment. Over the past four decades, interest rates have been falling and staying low, reassuring and encouraging consumers. In 2021-2023, the borrowing costs worldwide have been skyrocketing, which exacerbated the cost of living crisis and created a general pessimistic background. Not surprisingly, the PMIs and other soft data in advanced economies are weak, making experts talk about a recession.

The UK has been one of the worst performers among European countries. Due to the rate hikes, the cost of servicing the public debt in this country jumped to 10.4% of total income. This is the highest value among advanced economies.

Dynamics of costs of debt servicing as a share of revenues

Source: Financial Times.

However, the UK had better PMI data in July than other European countries. The updated IMF forecasts note that the UK will avoid a recession because of stronger consumer spending than previously thought. Is the UK no longer the sick man of Europe? Low expectations are great opportunities. Not surprisingly, the pound has been the G10 top performer for a long time and continues to compete for leadership with the Swiss franc.

Yes, a significant slowdown in the UK inflation has cut the expected BoE rate ceiling from 6.75% to less than 6%. Nonetheless, the Bank of England is not going to complete the cycle of monetary tightening, unlike the Fed or the ECB. Monetary policy divergence will continue supporting the GBPUSD bulls.

The pair has rebounded from level 1.28 amid the general market sentiment. Investors are wondering what level the federal funds rate will rise to and how long it will stay there, but they are confident that the process of disinflation is in full swing. This means that the giant jumps in the federal funds rate and the accompanying market volatility are a thing of the past, as well as a strong dollar.

Weekly trading plan for GBPUSD

Thus, the Fed doesn’t have such a strong influence on the sterling any longer; its hawkish tone is not enough to discourage the GBPUSD bulls. I suggest holding up the long trades entered at 1.28 and adding up to them. The targets of 1.34 and 1.36 are still relevant.

Price chart of GBPUSD in real time mode

The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteFinance. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.

Rate this article:

{{value}} ( {{count}} {{title}} )





Source link

https://primexbt.investments/start_trading/?cxd=459_549985&pid=459&promo=[afp7]&type=IB https://primexbt.investments/start_trading/?cxd=459_549985&pid=459&promo=[afp7]&type=IB https://primexbt.investments/start_trading/?cxd=459_549985&pid=459&promo=[afp7]&type=IB
  • Trending
  • Comments
  • Latest
The Evolving International Cannabis Landscape

The Evolving International Cannabis Landscape

March 20, 2024
UK Faces Two Decades of No Earnings Growth and More Austerity

UK Faces Two Decades of No Earnings Growth and More Austerity

July 29, 2023
Emirates Steel drops interest in Thyssenkrupp steel unit

Emirates Steel drops interest in Thyssenkrupp steel unit

July 27, 2023
Uniswap Launches Permissionless Bridging Across 9 Networks

Uniswap Launches Permissionless Bridging Across 9 Networks

October 24, 2024
High Street Retailers Pin Hopes On Discount Splurge In Black Friday Fever

High Street Retailers Pin Hopes On Discount Splurge In Black Friday Fever

0
UK Faces Two Decades of No Earnings Growth and More Austerity

UK Faces Two Decades of No Earnings Growth and More Austerity

0
Learn how to trade. For beginners

Learn how to trade. For beginners

0
Trading for beginners

Trading for beginners

0
5 Charts from a Volatile 2 Weeks

5 Charts from a Volatile 2 Weeks

April 18, 2025
Kim Soo Hyun breaks silence on financial trouble amid lawsuit discrepancy: ‘We did not fail to pay…’ | Web-series News

Kim Soo Hyun breaks silence on financial trouble amid lawsuit discrepancy: ‘We did not fail to pay…’ | Web-series News

April 18, 2025
Mortgage Rate Fatigue? Here’s How to Get Off the Seesaw of Wondering When to Buy

Mortgage Rate Fatigue? Here’s How to Get Off the Seesaw of Wondering When to Buy

April 18, 2025
TransPacific Cargo Trade Decimated by Trump’s Tariff War

TransPacific Cargo Trade Decimated by Trump’s Tariff War

April 18, 2025

Recent News

5 Charts from a Volatile 2 Weeks

5 Charts from a Volatile 2 Weeks

April 18, 2025
Kim Soo Hyun breaks silence on financial trouble amid lawsuit discrepancy: ‘We did not fail to pay…’ | Web-series News

Kim Soo Hyun breaks silence on financial trouble amid lawsuit discrepancy: ‘We did not fail to pay…’ | Web-series News

April 18, 2025

Categories

  • Business
  • Crypto
  • Economy
  • Forex News
  • Investing
  • Markets
  • More
  • Stock Trading
  • Trading for beginners

Site Navigation

  • Home
  • Contact Us
  • Stock Trading
  • Markets
  • Investing
  • Other Links
  • Privacy & Policy
Trading & Financial News

We bring you the fastest breaking news on Trading, forex, and finance submitted from credible and reliable news sources around the world.

© 2023 Tradinghow Useful forex analysis and financial news, submitted by credible news sources around the world.tradinghow.

No Result
View All Result
  • Contact Us
  • Home
  • Economy
  • Crypto
  • Investing
  • Markets
  • Forex News
  • Stock Trading

© 2023 Tradinghow Useful forex analysis and financial news, submitted by credible news sources around the world.tradinghow.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In