GBPUSD Analysis – March-13-2024

GBPUSD Analysis – The British pound is now less than $1.28, a drop from its recent high over the past seven months of $1.289 on March 8th. This change happened because the UK’s economy, as shown by GDP figures, did just as well as people thought it would. Meanwhile, the US dollar became more robust because the US Consumer Price Index (CPI), which measures price changes, was slightly higher than people expected.

GBPUSD Analysis 4-Hour Chart

UK’s Economic Movements in January

In January, the UK’s economy grew slightly, by 0.2%, thanks to more people buying things and more homes being built. This was a nice change from December when the economy shrank by 0.1%. At the same time, wages in the UK went up by 6.1% compared to last year in the three months ending in January. However, this was the smallest increase since the period ending in October 2022 and was just below what was forecasted at 6.2%.

Future Financial Predictions for the UK

People who trade stocks and money are watching the Bank of England closely. They think the Bank will lower interest rates for the first time in August. They also believe that the US’s European Central Bank and Federal Reserve might reduce their rates starting in June. Lower interest rates can make borrowing cheaper and might help encourage spending and investment.