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From December 19th, 2022, this website is no longer intended for residents of the United States. The 14-4H RSI reading of 75.22 signaled overbought territory, with buying pressure outweighing selling pressure. Significantly, the RSI aligns with the EMAs and signals a run at $1.30. Notably, the 50-day EMA continued to pull away from the 200-day EMA and reflected a bullish trend. For a look at all of today’s economic events, check out our economic calendar. Keep an eye on the RSI which, at this rate, could find itself going from overbought to oversold in just a matter of days.
This week, less hawkish Fed commentary weighed on the greenback. Economists forecast the US annual inflation rate to soften from 4.0% to 3.1%. For decades, the Japanese economy has struggled to achieve even the slightest signs of demand driven inflation after the asset price bubble burst in the early nineties. Since then, consumers have been reserved in their spending due to the fact that wages have struggled to rise. Create a chart for any currency pair in the world to see their currency history.
European Central Bank
That being said, with such a significant ADP beat, it is more likely that the NFP print will beat estimates and should drive support for the US dollar leaving cable exposed to the downside. Unemployment is projected to tick lower while focus will be on average earnings as has been the case recently to gauge its inflationary contributions. Rates markets now envision that the Bank of England (BoE) will be forced to hike interest rates to a mammoth 6.5% in an attempt to bring down relentless, widespread price pressures in Britain. Such an upward revision is likely to keep the pound supported versus its G7 peers, it may not necessarily contribute to strong sterling moves. UK households are still grappling with the cost-of-living squeeze even though energy prices have turned lower.
The exchange rate of the British Pound in relation to the United States Dollar on the chart, the table of the dynamics of the cost as a percentage for the day, week, month and year. Banks often advertise free or low-cost transfers, but add a hidden markup to the exchange rate. Wise gives you the real, mid-market, exchange rate, so you can make huge savings on your international money transfers. Sticky inflation would fuel bets on a September interest rate hike.
However, no Monetary Policy Committee members are on the calendar to speak today, leaving commentary with the media to influence. The BoE UK Financial Stability will draw interest, with BoE Governor Andrew Bailey also on the docket to speak today. Signs of bank sector stress could lead to a credit crunch, which would weigh on the GBP/USD.
GBP/JPY: Sterling limits losses against the yen as hot wage data supports GBP
Significantly, the 50-day EMA pulled further away from the 200-day EMA, signaling a hold above the $1.2775 – $1.2800 resistance band to target $1.30. Looking at the 4-Hourly Chart, the GBP to USD broke through the $1.2950 psychological resistance level. After the bullish Monday and Tuesday sessions, the GBP to USD remains above the resistance band and the 50-day ($1.27874) and 200-day ($1.26621) EMAs, sending bullish signals. Notably, the UK Labour Market Overview Report raised bets on a more hawkish BoE policy outlook on Tuesday, with UK average earnings (including bonuses) up 6.9% in May versus 6.7% in April. Our currency rankings show that the most popular US Dollar exchange rate is the USD to USD rate. As we enter the third quarter the outlook for the British Pound looks mixed.
While GBP should be supported by a growing interest rate differential against a range of currencies, investors will shun Sterling if recessionary fears grow. There are opportunities for a few GBP pairs with GBP/USD, EUR/GBP, and GBP/JPY all offering potential trade setups. Despite the recent Fed chatter, the bets on July and September interest rate hikes remained steady. According to the CME FedWatch Tool, the probability of a 25-basis point July Fed rate hike was 92.4% versus 93.0% on Monday. Significantly, the chances of the Fed lifting rates to 5.75% in September stood at 22.2%, down from 22.3% on Monday. There are no UK economic indicators to consider in the aftermath of the UK Labour Market Overview Report that sent cable through $1.2950.
Convert US Dollar to British Pound Sterling
Looking at the 14-Daily RSI, the 72.34 reading signaled overbought territory, aligned with the 50-day and 200-day EMAs. A GBP to USD hold above the upper level of the $1.2775 – $1.2800 resistance band would support a run at $1.30. However, https://g-markets.net/helpful-articles/top-11-forex-calendars-in-2021/ the GBP to USD would need to avoid a fall to sub- $1.2950 to target $1.30. The British pound has rallied significantly during the trading session on Wednesday, as CPI numbers in the United States came out lower than anticipated.
- Looking at the 14-Daily RSI, the 72.34 reading signaled overbought territory, aligned with the 50-day and 200-day EMAs.
- There are no UK economic indicators to consider in the aftermath of the UK Labour Market Overview Report that sent cable through $1.2950.
- Our currency rankings show that the most popular US Dollar exchange rate is the USD to USD rate.
- European fundamental data has revealed a weakening economic outlook.
European fundamental data has revealed a weakening economic outlook. Germany, Europe’s largest economy and industrial hub leads the way to the downside as far as manufacturing PMI is concerned and remains within a technical recession. The ECB will no doubt be hoping that the effect of prior tightening and base effects are enough to see meaningful declines in core inflation throughput the euro zone. If that materializes, the ECB would be able to soften their hawkish rhetoric and possibly favour a pause in the not too distant future. In this scenario, EUR/JPY has the potential to accelerate recent losses. In the retail and services sector, Japan’s restaurants and hotels are seeing impressive demand despite prices rising in some cases between 24 and 50 percent.
The Bank of England
Compare our rate and fee with Western Union, ICICI Bank, WorldRemit and more, and see the difference for yourself. However, the GBP to USD must avoid sub-$1.2950 and the $1.2775 – $1.2800 resistance band to support a sustained run at $1.30. We expect the CPI report to impact sentiment toward Fed monetary policy. In the current inflation environment and expectations of the BoE to push rates beyond 6%, access to credit will be vital to keep the economy on an even keel.
However, while the US is seeing positive signs on the part of the economy, Europe appears to be heading in the opposite direction – making sustained rate hikes a much harder sell. The British pound has rallied a bit during the trading session on Tuesday, but then pulled back just a bit during the trading session as a little bit of exhaustion may have entered the market. At this point, it looks like the British pound is going to try to go looking toward the 1.30 level above, which is a large, round, psychologically significant figure. Compared to the previous close exchange rate, US Dollar 🚀 increased by 0.57% (+0.194) vs. British Pound Sterling.
Beware of bad exchange rates.Banks and traditional providers often have extra costs, which they pass to you by marking up the exchange rate. Our smart tech means we’re more efficient – which means you get a great rate. They add hidden markups to their exchange rates – charging you more without your knowledge. Encouraging fundamental data in Japan coincides with a recent dollar selloff after US payroll (NFP) figures disappointed on Friday – leaving the pair on track for its largest four-day decline since January. However, the USD/JPY chart had been hinting about a possible reversal after multiple daily candles congregated below the psychological level of 145 without showing further bullish impetus. The cost of 26 British Pounds in United States Dollars today is $33.97 according to the “Open Exchange Rates”, compared to yesterday, the exchange rate increased by 0.57% (by +$0.01).
Converter X provides up-to-date exchange rates on global currencies. Check out the market overview
for even more real-time currency quotes or try to apply technical analysis tools on interactive charts. The British pound has started the European trading session relatively muted against the USD after yesterday’s stellar ISM services and ADP employment change releases.
The monthly rate dynamic of 26 Pounds sterling to US Dollars
These currency charts use live mid-market rates, are easy to use, and are very reliable. Encouraging wage data in Japan suggested that not only are wages going up, but that the increases are widespread across large and small businesses. Data from Rengo – an umbrella labor union – average wages within the small and medium enterprise (SME) sector rose marginally lower than the wider job market. Rising wages and longer lasting inflation could see the Bank normalize monetary policy but that appears only likely to even be discussed in 2024. EUR/USD has a rather wavy feel to it, rising and falling in succession as the US and Europe continue to target inflation.
It may take longer for a multi-decade mindset to come around to anticipate salary increases and higher prices for goods and services – a precondition for the BoJ to normalize its ultra-loose monetary policy. Don’t forget to look at and compare exchange rates from other banks available from 12 sources. The Japanese yen appears desperate to reclaim some of the consistent losses across G7 FX peers after the Bank of Japan’s (BoJ’s) supportive policy opens the currency up to depreciation. The carry trade has regained popularity as major central banks widen interest rate differentials.