Bank Of England Policy Expectations
There is growing confidence that the BoE will reduce interest rates in August. The GBP has been weakest against the US Dollar, trading near a two-month low around 1.3350. This follows a favourable US-EU trade agreement that bolstered the US Dollar’s appeal. Attention shifts to high-level trade talks between the US and China, with expectations of an extended tariff truce. The GBP/USD pair is also affected by upcoming US JOLTS Job Openings data and the Federal Reserve’s monetary policy announcement, with stability in interest rates anticipated. The technical outlook for GBP/USD remains bearish, trading below key levels like the 20-day EMA and RSI under 40.0. Support is noted at 1.3140, with resistance around 1.3790.Trade And Tariff Implications
Tariffs play a role in protectionism by supporting local industries. They differ from taxes but both aim to generate government revenue. With debates over tariffs’ effectiveness, some economists view them as protective, while others warn of negative long-term impacts and potential trade wars. Donald Trump’s 2024 campaign emphasizes tariffs to bolster the US economy, focusing on top importers Mexico, China, and Canada.Bắt đầu giao dịch ngay bây giờ — nhấp vào đây để tạo tài khoản VT Markets trực tiếp của bạn.