The Pound Sterling (GBP) demonstrates caution at the start of this week as investors remain uncertain over the UK’s economic outlook. Expectations abo
seems broadly bearish, trading below the 200-day Exponential Moving Average , which is at 1.2490. Downward-sloping 20 and 50-day EMAs indicate that the short-term trend is bearish. Momentum oscillators also indicate strength in the bearish impulse. The Pound Sterling is the oldest currency in the world and the official currency of the United Kingdom.
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. 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 not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
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