The British pound has yet to find market support


The domestic currency of the United Kingdom of Great Britain and Northern Ireland, the British pound (GBP), has so far not found support in the framework of forex operations of the foreign exchange market, according to economic correspondents linked to analysts of brokerage companies and financial strategists of the foreign exchange market. The exchange value of the British pound (GBP) against the US dollar (USD) is now still holding below the cross-rate level of 1.2600 USD per GBP, which financial strategists consider to be the so-called support point (support limit) of this GBP currency pair /USD.

Currently, during the European morning of this Wednesday, September 6, 2023, at approximately 7:35 CET, the exchange rate between the British pound (GBP) and the US dollar (ISD), as the world’s reserve currency, was at an exchange rate of 1.258 USD to EUR with the GBP strengthening by +0.11% against the USD on the day to date. This mutual exchange rate was achieved when the total exchange value of the US dollar, as measured by the US Dollar Currency Index (DXY), which compares the value of the USD to six other major world currencies, including the GBP, was at the point level of 104, 64 USD points with a daily decrease of -0.16% of the point value according to this index.

Thus, on the indicated day and time, the global currency pair of the single European currency euro (EUR) and the US dollar (USD) was traded on the foreign exchange market at the value of the mutual exchange rate of 1.073 USD per EUR with the daily strengthening of the EUR by + 0.12% of the rate so far against the USD. The British pound (GBP) nevertheless strengthened against the euro (EUR) in this situation, at a mutual exchange rate of 0.853 GBP per EUR, with the daily strengthening of the GBP by + 0.047% against the EUR. This strengthening of the British pound (GBP) both against the American dollar (USD), as the world’s main commodity currency, and against the single European currency, the euro (EUR), compared to its exchange value at the beginning of this 36th week of 2023, occurred according to analysts on the basis of relatively positive results on BRC retail sales data.

However, according to the statements of economic correspondents in connection with analysts of brokerage companies and financial strategists of investment banks in relation to the foreign exchange market, these positive data were still not enough for a strong enough investor sentiment that could swing the so-called exchange rate of the British pound (GBP) and the US dollar ( USD) at the mutual exchange rate limit above USD 1.2600 per GBP. Economic correspondents then tell the matter that while the retail sales figures were strong, the GBP has yet to find support in the markets due to the drop in China’s services PMI to its lowest level this year. The index’s 51.8 point is fast approaching the 50 median that separates expansion from the contracting services sector. Recent Chinese economic data supports this slowdown, and growth concerns continue to gain momentum. The Chinese government has since issued statements to stimulate the economy, but so far without major changes, markets remain cautious.