Select Language

GBP/USD recovers on general sentiment improvement

blockHeadVisual
  1. HOME
  2. Get information
  3. World FX news
  4. GBP/USD recovers on general sentiment improvement

World FX news

search
Breaking news

GBP/USD recovers on general sentiment improvement

  • X
  • facebook
  • LINE
  • RSS
  • X
  • facebook
  • LINE
  • RSS
New update 2025.02.12 07:51
GBP/USD recovers on general sentiment improvement

update 2025.02.12 07:51

  • GBP/USD rose 0.6% on Tuesday, bolstered by Greenback outflows.
  • Fed Chair Powell sees few moves on rates, tariffs expected to be reversed.
  • US inflation data, UK GDP growth figures on the horizon.

GBP/USD recovered ground on Tuesday, snapping a three-day losing streak and recovering back into touch range of the 1.2450 level, rising around two-thirds of one percent on the day. Global FX markets sold off the US Dollar slightly as risk appetite softly recovers across the board, bolstered by a steady-handed appearance from Federal Reserve (Fed) Chair Jerome Powell and and expectations that the latest iteration of US President Donald Trump's tariff threats will be averted by last-minute concessions, as has been the pattern since Donald Trump took over the White House.

UK data remains thin through the midweek sessions, but Cable traders will be on the lookout for Thursday's UK Gross Domestic Product (GDP) print. UK GDP is expected to show a recovery to an annualized 1.1% during the fourth quarter, though the Q4 GDP QoQ print is expected to come in at a -0.1% contraction.

Forex Today: Key US CPI takes centre stage amid a cautious Fed

US Consumer Price Index (CPI) inflation will be the dominant print on Wednesday. Headline US CPI inflation is expected to hold at 2.9% YoY, while core CPI inflation is forecast to tick down to 3.1% versus the last print of 3.2%. US Producer Price Index (PPI) inflation follows up on Thursday, with core PPI business-level inflation expected to cool slightly to 3.3% YoY from 3.5%.

GBP/USD price forecast

Tuesday saw the GBP/USD shake off its near-term bearish momentum, cutting off a three-day losing streak and recovering some chart territory to reclaim a familiar midrange near 1.2450. The pair still remains hobbled just south of the 50-day Exponential Moving Average (EMA) near the 1.2500 handle.

GBP/USD daily chart

Pound Sterling FAQs

The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, also known as 'Cable', which accounts for 11% of FX, GBP/JPY, or the 'Dragon' as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE).

The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of "price stability" - a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects.

Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP. A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall.

Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.

 

Date

Created

 : 2025.02.12

Update

Last updated

 : 2025.02.12

Related articles

Show more

Writer

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?
No loading Yes loading

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Previous article

prev

AUD/JPY Price Forecast: Stages recovery after hitting five-month low

Next article

EUR/USD gains ground as markets look higher

prev

Most viewed

Silver Price Forecast: XAG/USD rises to near $32.00 amid rising Middle-East tensions

Silver price (XAG/USD) retraces its recent losses, hovering around $31.90 per troy ounce during Wednesday's Asian session.
New
update2025.02.12 11:49

Japanese Yen dives to one-week low against USD amid rising trade tensions

The Japanese Yen (JPY) drifts lower for the third straight day on Wednesday and slides to a one-week low against its American counterpart during the Asian session.
New
update2025.02.12 11:32

BoJ's Ueda says will conduct monetary policy appropriately for 2% inflation target

Bank of Japan Governor Kazuo Ueda said early Wednesday that the Japanese central bank will continue to conduct its monetary policy with the aim of achieving its 2% inflation goal sustainably and stably.
New
update2025.02.12 10:54

Australian Dollar remains steady due to risk-off sentiment, Fed's cautious signals

The Australian Dollar (AUD) maintains its position against the US Dollar (USD) on Wednesday.
New
update2025.02.12 10:53

NZD/USD posts modest gains above 0.5650, US CPI data looms

The NZD/USD pair trades with mild gains around 0.5655 during the early Asian session on Wednesday.
New
update2025.02.12 10:49

Israel's Netanyahu says intense fighting will resume if hostages are not returned

Israel's Prime Minister Benjamin Netanyahu said late Tuesday that the ceasefire will be over and Israel will resume "intense fighting" in Gaza if Hamas doesn't release "our hostages" by Saturday noon, per BBC.
New
update2025.02.12 10:15

PBOC sets USD/CNY reference rate at 7.1710 vs. 7.1716 previous

On Wednesday, the People's Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead at 7.1710 as compared to the previous day's fix of 7.1716 and 7.2971 Reuters estimates.
New
update2025.02.12 10:15

White House official says 25% steel tariffs would stack on other levies on Canada

A White House official said late Tuesday that US President Donald Trump's planned 25% tariffs on all steel and aluminum imports would be added onto other levies on Canadian goods, resulting in a total 50% tariff.
New
update2025.02.12 09:40

WTI edges higher to near $73.00 amid supply worries

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $72.95 during the early Asian session on Wednesday.
New
update2025.02.12 09:28

US President Trump trade adviser: Australia 'killing aluminium market' in blow to tariff exemption hopes

US President Donald's trade adviser Peter Navarro said late Tuesday that Australia was "killing the aluminium market", the day after Trump signed executive orders for import tariffs on some metals.
New
update2025.02.12 08:33

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

arw
  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Line

Line
Facebook

Facebook
X

Twitter
Cancel