- Pound Sterling reduces Boe interest rates to 25 BPS, while dividing 5-4 votes to 4%.
- Boe Taylor supported the reduction of the usual interest rate at 50 basis points.
- More -fed official supports interest rates this year due to increasing labor market concerns.
Pound Sterling (GBP), the UK Bank’s (Boe) interest rates by 25 basis points (BPS) to 4%after 4%of the major bids against large peers on Thursday. This is the fifth interest rate, which has been cut by Boe since August 2024, when it started the monetary expansion cycle.
The economists predicted that the Monetary Policy Committee (MPC) would only support interest rates at their current levels. Boe Members: Megan Greene, Catherine Mann, Clare Lombardelli and Chief Economist Huw Pilli preferred interest rates by 4.25%, while the field Taylor borrowing rates voted for a greater decrease in 50 BPS.
Meanwhile, Boe continued a “gradual and careful” monetary guidance. Governor Andrew Bailey said in a statement of monetary policy, “Interest is still on a downward road and the future ratio cuts should be gradually and carefully.”
Traders were sure that Boe would reduce interest rates due to the cooling of labor market conditions. In order to balance the impact of the increase in employers’ contributions to social security plans, employment demand softened as the occupation holders reduced their labor force. In the autumn statement, Exchequer Rachel Reeves Chancellor announced that employers have increased to 15%in their contributions to national insurance (NI).
Boe increased the estimation of Gross Domestic Product (GDP) for the current year from 1% to 1.25% envisaged in May. In addition, one -year advanced consumer price index (CPI) projections rose from 2.4% to 2.7%.
Today British Pound Price
The following table shows the percentage change of the British Pound (GBP) against large currencies listed today. The British Pound was the most powerful against Swiss Franc.
| USD | EUR | Gbp | JPY | Cad | Volume | Nzd | Chf | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.02 % | -0.51% | 0.03 % | -0.06% | -0.32% | -0.32% | 0.07 % | |
| EUR | -0.02% | -0.53% | 0.00 % | -0.11% | -0.35% | -0.39% | 0.04 % | |
| Gbp | 0.51 % | 0.53 % | 0.55 % | 0.46 % | 0.21 % | 0.14 % | 0.60 % | |
| JPY | -0.03% | 0.00 % | -0.55% | -0.09% | -0.31% | -0.39% | 0.10 % | |
| Cad | 0.06 % | 0.11 % | -0.46% | 0.09 % | -0.25% | -0.31% | 0.17 % | |
| Volume | 0.32 % | 0.35 % | -0.21% | 0.31 % | 0.25 % | -0.05% | 0.41 % | |
| Nzd | 0.32 % | 0.39 % | -0.14% | 0.39 % | 0.31 % | 0.05 % | 0.47 % | |
| Chf | -0.07% | -0.04% | -0.60% | -0.10% | -0.17% | -0.41% | -0.47% |
The heat map shows the percentage of the major currencies to each other. When the bid currency is selected from the top row, the base currency is selected from the left column. For example, if you choose the British pound from the left column and move it to the US dollar along the horizontal line, the percentage amendment displayed in the box will represent GBP (Base)/USD (quote).
Daily Digest Market Carriers: Pound Sterling is expanding US Dollar
- Pound Sterling is approaching 1,3430 against the US Dollar (USD) during the European trade session on Thursday. The GBP/USD pair shows weakness after the Dovish interest rate guidance of a number of US dollars federal reserve (FED) officials.
- During the writing, the US dollar index (DXY), which follows the value of Greenback against the six main currencies, keeps losses on Wednesday around 98.20.
- On Wednesday, Minneapolis Fed President Neel Keşkari fed San Francisco Fed President Mary Daly, and Governor Lisa Cook discussed interest rates in favor of reducing interest rates by specifying concerns about the labor market and economy.
- In an interview with CNBC, Keşkari said, “The economy is slowing down and the Fed needs to respond to the slowing economy.” Keskari, “starting to adjust the policy rate may still be relevant in the near term, and this year, the two rates still seem appropriate,” he added. When asked whether the interest rate deductions are suitable at a time when the effect of tariffs began to flow to the economy, Keşkari said: “If inflation rises due to tariffs, the FED can pause and even walk; the slowdown data is clear.” He said.
- FED officials have been worried about the labor market conditions since the release of the US (USA) Farm Payroll (NFP) report in July, which showed the estimates that the number of employment has missed with a wide difference and the May and June figures were revised downwards.
- According to the CME Fedwatch vehicle, traders almost completely priced in reducing the 25 BP interest rate in September, which will reduce borrowing rates to 4.00%.
- On the global front, US President Trump reappeared, as the sectoral tariff fears reappeared, as he announced 100% additional tasks for all semiconductor imports.
Technical Analysis: Pound Sterling gets 20 -day EMA
The Pound Sterling extends its winning series and jumps to a level close to 1,3430 against the US dollar on Thursday. The GBP/USD pair rises above the fault zone of the head and shoulder (H&S) graphics model, which is around 1,3376. The cable rotates on the 20 -day exponential moving average (EMA), which is traded around 1,3390.
The 14-day relative force index (RSI) returns from the range of 20.00-40.00 to 40.00-60.00, which indicates that the decline momentum is over for now. However, the decline prejudice is still intact.
When we look down, the lowest level of the 1,3140 May 12 will act as a key support zone. The top will serve as a significant obstacle near 1,3585, on July 23rd.
