FXEM - EMPIRE MARKETS - Company New Article

The GBP/USD pair is currently trading near the 1.2450 level, stable after volatile movements in recent sessions.

Factors affecting the pair’s movements:

• Trade tensions: The US announcement of 25% tariffs on steel and aluminum imports has raised concerns in the markets, affecting investor sentiment.
• Federal Reserve Statements: Federal Reserve Chairman Jerome Powell indicated that there is no need to rush to cut interest rates, while warning that tariff policies could increase pressure on prices.
• US Inflation Data: Investors are awaiting US inflation data, where inflation is expected to remain at 2.9%, while core inflation could decline to 3.1%.
• Bank of England Statements: Catherine Mann, a member of the Bank of England’s Monetary Policy Committee, indicated a change in her stance on monetary policy due to weak demand, expecting inflation to reach the 2% target this year.

If the price manages to break the resistance level of 1.2500 and hold above it, it may open the way for further rise towards the levels of 1.2575 and 1.2660. On the other hand, breaking the support level of 1.2370 may lead to further decline towards the levels of 1.2300 and 1.2250.

The EUR/USD pair is currently trading at 1.0375, trying to consolidate after a wave of decline amid continued strength in the US dollar. The pair is still affected by the Federal Reserve’s monetary policy, while traders are awaiting any new developments from the European Central Bank regarding the interest rate path.

• A break of the 1.0400 level may push the pair to continue rising towards 1.0450.
• On the other hand, a break of 1.0350 may lead to a further decline towards 1.0300.

With the ongoing uncertainty in the markets, the euro is expected to remain under pressure unless positive signals from the European economy support the currency’s recovery.