GBP/USD has declined from a peak of 1.2969, driven by a risk-off sentiment and strength in the US Dollar. The Bank of England (BoE) maintained interest rates while expressing uncertainty about future economic conditions, referencing US tariffs as a risk factor for global growth.
On Friday, GBP was down 0.29% against the USD, trading at 1.2931. US equities showed losses, reflecting a cautious market environment. The BoE and Fed have shared concerns about the impact of the trade war on economic conditions.
Upcoming Economic Data
Upcoming UK inflation data and the Core Personal Consumption Expenditures Price Index from the US are anticipated to influence monetary policy expectations.
Although GBP/USD remains nearly flat for the week, it has shown bearish momentum, with the current low at 1.2927. Should selling pressure continue, it could test a low of 1.2861, while breaking 1.3000 would target the November high at 1.3047.
This week, the British Pound performed strongest against the Australian Dollar, as shown in the provided currency performance table, which details percentage changes against various major currencies.
The Pound has pulled back after reaching 1.2969, held back by investors shifting away from risk and a stronger Dollar. The Bank of England opted to keep rates unchanged but gave no firm direction on where things might head next. US-imposed tariffs were cited as a threat to worldwide growth, adding to a backdrop of caution.
Going into Friday, Sterling edged down 0.29% to 1.2931, in step with a broader retreat in stocks across the US. Concerns from both the BoE and the Federal Reserve tied to the drag from trade disputes have further shaped soft sentiment.
The week ahead brings inflation numbers from the UK and the US’s Core PCE Price Index, which markets tend to follow closely as a measure of how inflation might pressure future policy shifts. These releases will likely set the pace for rate speculation, giving traders direction as expectations fluctuate.
Technical Analysis And Market Sentiment
Sterling has moved little overall over the past several days, though technical indicators suggest sellers are gaining ground. Support has formed at 1.2927, but if downward momentum builds, 1.2861 could come into view. Conversely, if buyers take command, reclaiming 1.3000 might lift targets towards November’s peak at 1.3047.
Compared to other major currencies, the Pound was strongest against the Australian Dollar this week, as evident in percentage-based comparisons. We see this as a reflection of shifting global capital flows and regional factors weighing in.
