Pound Sterling (GBP) is experiencing a slight increase in value. Prime Minister Starmer is set to address parliament today, where he is expected to announce an increase in defence spending before meeting President Trump.
BoE Economist Pill will also speak at 9.00 ET. He previously noted that while lower interest rates may be on the horizon, any reductions will occur at a slow pace.
The currency is currently trading around the 100-day moving average of 1.2641. It appears to be consolidating, potentially preparing for a rise towards 1.28, with support observed at 1.2600/10.
The pound is showing a modest upward movement, with traders watching closely for any shifts in momentum. With the Prime Minister preparing to speak in parliament, attention is firmly on the details of his expected pledge to raise defence spending. If confirmed, this could bring economic and fiscal implications that might affect sentiment in the markets. His subsequent meeting with the US President could further shape market expectations, particularly if discussions touch on trade relations or investment commitments.
Meanwhile, Huw’s remarks later this morning will be closely monitored for any indications regarding interest rate policy. His previous statements suggested that while lower rates could be introduced over time, the approach would be methodical rather than rapid. If he reinforces this view, it may help stabilise expectations and limit sharp movements in sterling. On the other hand, any new signs of a shift in tone may lead to more pronounced volatility.
From a technical perspective, sterling remains close to its 100-day moving average at 1.2641. This suggests that traders are assessing their next moves, with upward potential towards 1.28 still visible. However, support remains near 1.2600/10, which could act as a buffer in the event of any dips. What happens next depends on how the day’s events unfold and how participants react to both political and economic factors.
