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How does the Trade Balance impact the Pound?
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.
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.
How does economic data influence the value of the Pound?
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
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
How do the decisions of the Bank of England impact on the Pound Sterling?
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.
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.
What is the Pound Sterling?
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 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).
GBP/JPY Price Forecast: Technical outlook
The technical picture shows the GBP/JPY remains upward biased, even though after reaching a yearly peak of 214.29 on January 13 retreated towards the 211.00 mark. Since then, the pair consolidated within the 211.00 – 213.00 area, before buyers had cleared the top of the range attempting to challenge the current yearly high.
From a momentum standpoint, buyers have the upper hand as shown by the Relative Strength index (RSI), which is approaching the overbought territory.
If GBP/JPY clears 214.00, the next resistance would be 214.29 ahead of testing 214.50. A breach of the latter will expose 215.00.
The technical picture shows the GBP/JPY remains upward biased, even though after reaching a yearly peak of 214.29 on January 13 retreated towards the 211.00 mark. Since then, the pair consolidated within the 211.00 – 213.00 area, before buyers had cleared the top of the range attempting to challenge the current yearly high.
From a momentum standpoint, buyers have the upper hand as shown by the Relative Strength index (RSI), which is approaching the overbought territory.
If GBP/JPY clears 214.00, the next resistance would be 214.29 ahead of testing 214.50. A breach of the latter will expose 215.00.
GBP/JPY Price Forecast: Surges to weekly high as Pound strengthens
GBP/JPY hits 213.98, marking a new weekly high amid strong buying momentum.
Technical outlook remains bullish, with resistance at 214.29 and 215.00 in sight.
Bearish reversal possible if price drops below 212.04 and 210.71 support levels.
The GBP/JPY rallies to a new weekly high of 213.98, up by more than 1.10% in the week, as mixed economic data from the UK, pushed the British Pound higher. Fiscal concerns on PM Takaichi’s plan, undermined the Japanese Yen. The cross-pair trades at 213.85, up 0.58%
GBP/JPY hits 213.98, marking a new weekly high amid strong buying momentum.
Technical outlook remains bullish, with resistance at 214.29 and 215.00 in sight.
Bearish reversal possible if price drops below 212.04 and 210.71 support levels.
The GBP/JPY rallies to a new weekly high of 213.98, up by more than 1.10% in the week, as mixed economic data from the UK, pushed the British Pound higher. Fiscal concerns on PM Takaichi’s plan, undermined the Japanese Yen. The cross-pair trades at 213.85, up 0.58%
What is Quantitative tightening (QT) and how does it affect the Pound Sterling?
Quantitative tightening (QT) is the reverse of QE, enacted when the economy is strengthening and inflation starts rising. Whilst in QE the Bank of England (BoE) purchases government and corporate bonds from financial institutions to encourage them to lend; in QT, the BoE stops buying more bonds, and stops reinvesting the principal maturing on the bonds it already holds. It is usually positive for the Pound Sterling.
Quantitative tightening (QT) is the reverse of QE, enacted when the economy is strengthening and inflation starts rising. Whilst in QE the Bank of England (BoE) purchases government and corporate bonds from financial institutions to encourage them to lend; in QT, the BoE stops buying more bonds, and stops reinvesting the principal maturing on the bonds it already holds. It is usually positive for the Pound Sterling.
What is Quantitative Easing (QE) and how does it affect the Pound?
In extreme situations, the Bank of England can enact a policy called Quantitative Easing (QE). QE is the process by which the BoE substantially increases the flow of credit in a stuck financial system. QE is a last resort policy when lowering interest rates will not achieve the necessary result. The process of QE involves the BoE printing money to buy assets – usually government or AAA-rated corporate bonds – from banks and other financial institutions. QE usually results in a weaker Pound Sterling.
In extreme situations, the Bank of England can enact a policy called Quantitative Easing (QE). QE is the process by which the BoE substantially increases the flow of credit in a stuck financial system. QE is a last resort policy when lowering interest rates will not achieve the necessary result. The process of QE involves the BoE printing money to buy assets – usually government or AAA-rated corporate bonds – from banks and other financial institutions. QE usually results in a weaker Pound Sterling.
How does the Bank of England’s monetary policy influence Sterling?
When inflation is above the Bank of England’s target it responds by raising interest rates, making it more expensive for people and businesses to access credit. This is positive for the Pound Sterling because higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls below target, it is a sign economic growth is slowing, and the BoE will consider lowering interest rates to cheapen credit in the hope businesses will borrow to invest in growth-generating projects – a negative for the Pound Sterling.
When inflation is above the Bank of England’s target it responds by raising interest rates, making it more expensive for people and businesses to access credit. This is positive for the Pound Sterling because higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls below target, it is a sign economic growth is slowing, and the BoE will consider lowering interest rates to cheapen credit in the hope businesses will borrow to invest in growth-generating projects – a negative for the Pound Sterling.
What does the Bank of England do and how does it impact the Pound?
The Bank of England (BoE) decides monetary policy for the United Kingdom. Its primary goal is to achieve ‘price stability’, or a steady inflation rate of 2%. Its tool for achieving this is via the adjustment of base lending rates. The BoE sets the rate at which it lends to commercial banks and banks lend to each other, determining the level of interest rates in the economy overall. This also impacts the value of the Pound Sterling (GBP).
The Bank of England (BoE) decides monetary policy for the United Kingdom. Its primary goal is to achieve ‘price stability’, or a steady inflation rate of 2%. Its tool for achieving this is via the adjustment of base lending rates. The BoE sets the rate at which it lends to commercial banks and banks lend to each other, determining the level of interest rates in the economy overall. This also impacts the value of the Pound Sterling (GBP).
How could the UK Retail Sales affect GBP/USD?
GBP/USD pair may remain silent even if UK Retail Sales data for December come stronger-than-expected, as the Bank of England (BoE) is widely expected to stay put on a gradual easing path, even as price pressures accelerated in December. Focus will be shifted toward the preliminary S&P Global Purchasing Managers’ Index (PMI) data for January from the United Kingdom (UK) and the United States (US) due later in the day.
The GBP/USD pair may regain its ground as the US Dollar (USD) struggles with increased risk aversion, which could be attributed to the geopolitical tensions. US President Donald Trump initially threatened tariffs against European countries opposing his Greenland plan, but later backed down after securing a NATO framework agreement for a potential deal.
GBP/USD pair may remain silent even if UK Retail Sales data for December come stronger-than-expected, as the Bank of England (BoE) is widely expected to stay put on a gradual easing path, even as price pressures accelerated in December. Focus will be shifted toward the preliminary S&P Global Purchasing Managers’ Index (PMI) data for January from the United Kingdom (UK) and the United States (US) due later in the day.
The GBP/USD pair may regain its ground as the US Dollar (USD) struggles with increased risk aversion, which could be attributed to the geopolitical tensions. US President Donald Trump initially threatened tariffs against European countries opposing his Greenland plan, but later backed down after securing a NATO framework agreement for a potential deal.
The UK Retail Sales Overview
The United Kingdom (UK) docket has the Retail Sales data for December to be released by the Office for National Statistics (ONS) on Friday, later this session at 07:00 GMT.
UK Retail Sales are expected to decline by 0.1% month-over-month (MoM) in December, following a 0.1% decline seen in November. On an annualized basis, Retail Sales are seen rising 1% during the reported month, inching higher from the previous increase of 0.6%.
Core Retail Sales, stripping the basket of motor fuel sales, are expected to fall 0.2% MoM, matching the prior decline, while YoY growth may rise to 1.4% from 1.2% in November.
The United Kingdom (UK) docket has the Retail Sales data for December to be released by the Office for National Statistics (ONS) on Friday, later this session at 07:00 GMT.
UK Retail Sales are expected to decline by 0.1% month-over-month (MoM) in December, following a 0.1% decline seen in November. On an annualized basis, Retail Sales are seen rising 1% during the reported month, inching higher from the previous increase of 0.6%.
Core Retail Sales, stripping the basket of motor fuel sales, are expected to fall 0.2% MoM, matching the prior decline, while YoY growth may rise to 1.4% from 1.2% in November.
Market reaction to the UK Retail Sales report
The upbeat UK Retail Sales report fails to boost the Pound Sterling. The GBP/USD pair is trading 0.06% lower on the day at 1.3488 as of writing.
Pound Sterling Price Today
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Japanese Yen.
The upbeat UK Retail Sales report fails to boost the Pound Sterling. The GBP/USD pair is trading 0.06% lower on the day at 1.3488 as of writing.
Pound Sterling Price Today
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Japanese Yen.
UK Retail Sales climb 0.4% MoM in December vs. -0.1% expected
The United Kingdom (UK) Retail Sales rose 0.4% month-over-month (MoM) in December after falling 0.1% in November, according to the latest data published by the Office for National Statistics (ONS) on Friday.
Markets projected a decrease of 0.1% in the reported month.
The core Retail Sales, stripping the auto motor fuel sales, increased 0.3% MoM in December, compared with the previous decline of 0.4% (revised from -0.2%). This figure came in above the market consensus of a 0.2% drop.
The annual Retail Sales in the UK climbed 2.5% in December versus 1.8% prior (revised from 0.6%), above the consensus of 1.0%. The annual core Retail Sales jumped 3.1% in the same month versus a 2.6% rise prior (revised from 1.2%). This reading came in better than the market expectations of 1.4%.
The United Kingdom (UK) Retail Sales rose 0.4% month-over-month (MoM) in December after falling 0.1% in November, according to the latest data published by the Office for National Statistics (ONS) on Friday.
Markets projected a decrease of 0.1% in the reported month.
The core Retail Sales, stripping the auto motor fuel sales, increased 0.3% MoM in December, compared with the previous decline of 0.4% (revised from -0.2%). This figure came in above the market consensus of a 0.2% drop.
The annual Retail Sales in the UK climbed 2.5% in December versus 1.8% prior (revised from 0.6%), above the consensus of 1.0%. The annual core Retail Sales jumped 3.1% in the same month versus a 2.6% rise prior (revised from 1.2%). This reading came in better than the market expectations of 1.4%.
How does the Trade Balance impact the Pound?
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.
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.
How does economic data influence the value of the Pound?
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
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
How do the decisions of the Bank of England impact on the Pound Sterling?
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.
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.
What is the Pound Sterling?
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 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).
GBP/JPY Price Forecast: Technical outlook
The technical picture shows the GBP/JPY remains upward biased, even though after reaching a yearly peak of 214.29 on January 13 retreated towards the 211.00 mark. Since then, the pair consolidated within the 211.00 – 213.00 area, before buyers had cleared the top of the range attempting to challenge the current yearly high.
From a momentum standpoint, buyers have the upper hand as shown by the Relative Strength index (RSI), which is approaching the overbought territory.
If GBP/JPY clears 214.00, the next resistance would be 214.29 ahead of testing 214.50. A breach of the latter will expose 215.00.
The technical picture shows the GBP/JPY remains upward biased, even though after reaching a yearly peak of 214.29 on January 13 retreated towards the 211.00 mark. Since then, the pair consolidated within the 211.00 – 213.00 area, before buyers had cleared the top of the range attempting to challenge the current yearly high.
From a momentum standpoint, buyers have the upper hand as shown by the Relative Strength index (RSI), which is approaching the overbought territory.
If GBP/JPY clears 214.00, the next resistance would be 214.29 ahead of testing 214.50. A breach of the latter will expose 215.00.
GBP/JPY Price Forecast: Surges to weekly high as Pound strengthens
GBP/JPY hits 213.98, marking a new weekly high amid strong buying momentum.
Technical outlook remains bullish, with resistance at 214.29 and 215.00 in sight.
Bearish reversal possible if price drops below 212.04 and 210.71 support levels.
The GBP/JPY rallies to a new weekly high of 213.98, up by more than 1.10% in the week, as mixed economic data from the UK, pushed the British Pound higher. Fiscal concerns on PM Takaichi’s plan, undermined the Japanese Yen. The cross-pair trades at 213.85, up 0.58%.
GBP/JPY hits 213.98, marking a new weekly high amid strong buying momentum.
Technical outlook remains bullish, with resistance at 214.29 and 215.00 in sight.
Bearish reversal possible if price drops below 212.04 and 210.71 support levels.
The GBP/JPY rallies to a new weekly high of 213.98, up by more than 1.10% in the week, as mixed economic data from the UK, pushed the British Pound higher. Fiscal concerns on PM Takaichi’s plan, undermined the Japanese Yen. The cross-pair trades at 213.85, up 0.58%.
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