Though it’s one of Prague’s newest matcha spots, JUN Bar in New Town already draws a steady crowd—most notably for its Czech-inspired matcha. The Šodó Matcha, a playful nod to a Czech sweet, is served with a silky vanilla-rum cream base and finished with two pillowy buns balanced on top. Another standout is the Mango Sticky Rice Matcha, inspired by the Thai dessert, layered with mango and coconut cream and topped with a little sticky rice. There’s no shortage of unique options here.
Cardano (ADA) and Ripple (XRP) are two of the largest, most-discussed cryptocurrencies across the globe. They also have a large community and are backed by massive market caps. Yet for ambitious investors hoping to turn $5,000 into $100,000, the most compelling bet right now is LayerBrett (LBRETT). With a roaring presale and an explosive potential, LayerBrett looks like the best way to rake in maximum returns in 2025. This article explains why.
Why LayerBrett is the next 100x crypto
Crypto experts back LayerBrett as the breakout crypto star for the second half of 2025. This is because LBRETT, whilst being a meme coin, delivers real utility as well.
It is a layer 2 Ethereum solution, providing lightning-fast transactions at ultra-low fees whilst seamlessly integrating NFTs and DeFi functionalities into its operations. Its staking program is drawing huge interest, offering up to 864% APY for early adopters, which is almost unheard of in meme circles.
Momentum is at a peak: LBRETT’s presale has raised nearly $3 million, which is quite remarkable. Its entry price of $0.0055 is extremely attractive and analysts believe its current surge will propel LBRETT well past $1 in the next bullish phase. This gives $5,000 buyers a legitimate shot at six-figure returns. Little wonder everyone wants in before exchange listings begin.
There’s trouble ahead for XRP holders
The outlook for XRP is getting cloudy. Since summer began, Coinbase has slashed its XRP reserves by 83%, alarming retail and whale holders alike. Recent on-chain movements—like a $250 million whale transfer—suggest major holders may be losing confidence in Ripple.
While XRP’s efficient network and institutional partnerships remain strong, XRP sell signals are going stronger as there’s little room for handsome upsides in the near future. This increases the case for diversification out of XRP. Many see prudence in cashing out and rotating into higher-growth opportunities, with LayerBrett top of mind.
Cardano price prediction
Retail sentiment for ADA has flipped bearish, with a commentary ratio of bullish to bearish at 1.5:1. This is the lowest this ratio has been in 5 months, and it means that Cardano price predictions are about to become more bearish, even though ADA has one of the strongest foundations in crypto.
At the moment, ADA remains range-bound, trading below $1 for most of the last few months. Analysts believe a breakout above $1.18 could unleash a powerful rally, and send ADA up to $3 or even $5.
This would restore ADA’s dominance in the crypto market. But without sustained momentum this scenario remains speculative. And a cautious approach is warranted for anyone thinking about putting money in ADA.
Conclusion
Right now, LayerBrett stands out as the superior investment versus Cardano and XRP. That’s because it is fresher, and has loads of room for price appreciation. If meme coins like DOGE and SHIB produced 10,000% returns in prior bull cycles, LBRETT—with advanced tech, energetic community, and viral meme power—may do even better.
LBRETT’s presale offers ground-floor access to what analysts predict will be a 100x meme token. For anyone seeking to turn $5,000 into $100,000 in today’s market, joining LayerBrett before it lists on exchanges is the way to go.
Layer Brett is in presale now, but it’s moving fast. Get in early, stake while rewards are high, and don’t miss your shot at the next 100x crypto!
This article contains information about a cryptocurrency presale. Crypto Economy is not associated with the project. As with any initiative within the crypto ecosystem, we encourage users to do their own research before participating, carefully considering both the potential and the risks involved. This content is for informational purposes only and does not constitute investment advice.
Venus Protocol, one of the leading lending platforms on the BNB Chain, recently suffered a significant security breach, with an estimated $27 million in assets allegedly drained as a result of a suspected exploit in one of its core contracts. According to on-chain analysis and reports from security observers, the exploit involved the unauthorized updating of the Core Pool Comptroller contract to a malicious address, which then siphoned off a range of tokens including vUSDC and vETH. The stolen assets are currently held in the attacker’s contract and have not yet been swapped, raising uncertainty about whether the exploit will lead to a full-scale cash-out. Despite the incident, the Venus community has yet to issue an official statement on the matter, and security teams continue to monitor the situation closely.
The incident highlights the ongoing vulnerabilities within decentralized finance (DeFi) ecosystems, even among established protocols with substantial total value locked (TVL). At its peak, Venus held over $7 billion in assets, making it a critical player in the BNB Chain’s DeFi landscape. The platform functions as a money market where users can deposit assets such as stablecoins and major tokens to earn interest or collateralize loans. Its native XVS token plays a vital role in governance and protocol incentives. The current breach underscores the need for robust security audits and continuous monitoring to mitigate risks in DeFi systems where smart contract vulnerabilities can lead to significant financial losses.
The exploit of Venus Protocol follows a similar incident involving Nemo, a yield protocol on the Sui blockchain, which was recently drained of $2.4 million in USDC. The attack on Nemo saw the malicious actor bridge the stolen tokens from Arbitrum to Ethereum, according to reports from blockchain security firm Peckshield. This incident caused the total value locked in the Nemo yield trading platform to drop drastically, from over $6 million to $1.53 million, as tracked by DeFiLlama. These consecutive attacks demonstrate the persistent threats facing DeFi platforms, particularly as institutional adoption of digital assets continues to grow.
A broader cybersecurity report by ReversingLabs has also highlighted a new and sophisticated tactic being used by hackers: concealing malware within Ethereum smart contracts. This method allows malicious actors to disguise harmful traffic as normal blockchain activity, making it difficult for traditional security systems to detect. The report explains that Ethereum’s smart contracts, which are often perceived as secure due to their transparent and immutable nature, can be exploited by embedding malicious code that executes under the guise of standard operations. The report underscores how attackers can leverage these contracts to exfiltrate data, deploy ransomware, or establish backdoors, all while evading conventional detection tools.
The rise of such tactics underscores the evolving sophistication of cybercriminals within the blockchain space. As Ethereum and other platforms expand their use cases across industries—from finance to supply chain management—the potential attack surface grows accordingly. Cybersecurity experts emphasize the need for developers to adopt rigorous smart contract auditing, real-time monitoring for anomalous behavior, and formal verification to minimize vulnerabilities. Additionally, traditional cybersecurity teams must adapt their tools to effectively monitor and respond to blockchain-specific threats. This requires investing in solutions capable of analyzing smart contract interactions and identifying patterns that deviate from expected behaviors. The incident with Venus Protocol and other recent DeFi exploits serve as a stark reminder of the necessity for proactive security measures in the fast-evolving digital asset ecosystem.
Source: [1] BNB Chain-Based Venus Protocol Drained of $27M on Suspected Contract Compromise (https://www.coindesk.com/tech/2025/09/02/bnb-chain-based-venus-protocol-drained-of-usd27m-on-suspected-contract-compromise) [2] Sui-Based Yield Protocol Nemo Exploited for $2.4M in USDC (https://www.coindesk.com/markets/2025/09/08/sui-based-yield-protocol-nemo-exploited-for-usd2-4m-in-usdc) [3] Hackers Conceal Malware In Ethereum Smart Contracts According to New Cybersecurity Report (https://www.crowdfundinsider.com/2025/09/250211-hackers-conceal-malware-in-ethereum-smart-contracts-according-to-new-cybersecurity-report/)
Gold consolidates Friday’s record rally to $3,600 early Monday amid risk-off flows.
US Dollar recovers from the Nonfarm Payrolls-led blow; Fed rate cut bets could limit its upswing.
Heavily overbought RSI on the daily chart indicates buyers’ exhaustion as focus shifts to US CPI inflation this week.
Gold is hanging close to the all-time high of $3,600 in Asian trading on Monday, in the aftermath of awful US labor data for August released on Friday.
Gold pauses its record run ahead of US inflation test
Despite the latest pullback from record highs, Gold buyers retain control amid sustained dovish expectations surrounding the US Federal Reserve (Fed), lingering Russia-Ukraine geopolitical tensions, and additional Gold buying by China’s central bank last month.
The August US jobs report underscored the fourth consecutive month of weak hiring, cementing a 25 basis points (bps) Fed interest rate cut later this month.
The Bureau of Labor Statistics (BLS) showed Friday that the headline US Nonfarm Payrolls (NFP) increased by 22,000, far below forecasts of 75,000, while the Unemployment Rate climbed to 4.3%, the highest level since late 2021.
Additionally, Russia carried out its biggest air strike of the war on Ukraine over the weekend. In response, Ukrainian President Volodymyr Zelensky said the barrage of drones and missiles left four people dead and caused widespread damage across the north, south and east of the country, per Reuters.
Furthermore, the official data showed on Sunday that the People’s Bank of China (PBoC) added Gold to its reserves in August, extending purchases of bullion into a 10th straight month.
However, Gold buyers turn cautious amid renewed US Dollar upswing, led by a steep surge in the USD/JPY pair after the Japanese Yen (JPY) tumbled on the domestic political instability.
Japanese Prime Minister Shigeru Ishiba stepped down from his position on Sunday, following a string of election defeats that stripped his Liberal Democratic Party (LDP) of its majority in both houses of Parliament.
A slowdown in Chinese imports in August raised concerns over the dragon nation’s economic prospects, threatening the Gold price upside. China is the world’s top yellow metal consumer.
Looking ahead, traders could resort to liquidating their Gold long trades, repositioning before the critical US Consumer Price Index (CPI) and Producer Price Index (PPI) inflation data due later in the week.
The inflation data will help confirm whether the Fed will deliver a jumbo rate cut this month.
Gold price technical analysis: Daily chart
Technically, Gold could see a brief corrective decline as the 14-day Relative Strength Index (RSI) remains in a heavily overbought zone. The leading indicator is currently near 76.
Any pullback in Gold could challenge the initial support at the $3,550 psychological level, below which the September 4 low of $3,511 will be tested.
A sustained break below the latter will open up a fresh downside toward this month’s low of 3,437.
However, the Bull Cross of the 21-day Simple Moving Average (SMA) and the 50-day SMA could keep bargain hunting alive.
If buyers regain poise, the next topside barrier is seen at the $3,600 psychological mark/ record high. Further north, all eyes will be on the $3,650 figure.
Inflation FAQs
Inflation measures the rise in the price of a representative basket of goods and services. Headline inflation is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core inflation excludes more volatile elements such as food and fuel which can fluctuate because of geopolitical and seasonal factors. Core inflation is the figure economists focus on and is the level targeted by central banks, which are mandated to keep inflation at a manageable level, usually around 2%.
The Consumer Price Index (CPI) measures the change in prices of a basket of goods and services over a period of time. It is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core CPI is the figure targeted by central banks as it excludes volatile food and fuel inputs. When Core CPI rises above 2% it usually results in higher interest rates and vice versa when it falls below 2%. Since higher interest rates are positive for a currency, higher inflation usually results in a stronger currency. The opposite is true when inflation falls.
Although it may seem counter-intuitive, high inflation in a country pushes up the value of its currency and vice versa for lower inflation. This is because the central bank will normally raise interest rates to combat the higher inflation, which attract more global capital inflows from investors looking for a lucrative place to park their money.
Formerly, Gold was the asset investors turned to in times of high inflation because it preserved its value, and whilst investors will often still buy Gold for its safe-haven properties in times of extreme market turmoil, this is not the case most of the time. This is because when inflation is high, central banks will put up interest rates to combat it.
Higher interest rates are negative for Gold because they increase the opportunity-cost of holding Gold vis-a-vis an interest-bearing asset or placing the money in a cash deposit account. On the flipside, lower inflation tends to be positive for Gold as it brings interest rates down, making the bright metal a more viable investment alternative.
The EUR/USD forecast indicates continued weakness in the dollar after poor US jobs data.
Market focus is now shifting to the US CPI report that will continue shaping the outlook for rate cuts.
The European Central Bank will meet on Thursday.
The EUR/USD forecast indicates continued weakness in the dollar after a downbeat monthly employment report on Friday. Meanwhile, market participants are slowly shifting their focus to the ECB policy meeting, where policymakers could keep interest rates unchanged.
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Data on Friday revealed that the US economy added a dismal 22,000 jobs in August. Meanwhile, economists had expected an additional 75,000 jobs. At the same time, the unemployment rate increased from 4.2% to 4.3% as expected. The poor figures solidified bets for a September rate cut and increased the likelihood of a more dovish Fed in the future.
Market focus is now shifting to the US CPI report that will continue shaping the outlook for rate cuts. Soft figures will support the current outlook. On the other hand, hot figures could renew worries about the impact of tariffs on price pressures.
Meanwhile, the European Central Bank will meet on Thursday. Traders expect policymakers to keep rates unchanged. This will contrast sharply with the Fed, which will likely be more dovish this month. The divergence in policy and economic outlooks between the US and the Eurozone could send the euro higher in the coming months.
EUR/USD key events today
Market participants do not expect any key economic releases today. Therefore, the pair might extend the previous session’s move.
EUR/USD technical forecast: Bulls puncture the range resistance
EUR/USD 4-hour chart
On the technical side, the EUR/USD price is attempting to break out of its long-term range. Bulls are challenging the range resistance at the 1.1720 level. At the same time, the price trades above the 30-SMA, with the RSI near the overbought region, suggesting bulls are in the lead.
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EUR/USD has remained in consolidation for a long time, with the price moving sideways and chopping through the 30-SMA. However, before, the range, bulls were in the lead. Therefore, there is a high chance they will break out of this range to continue rallying.
A break above the range resistance would allow the price to retest the 1.1801 resistance level. On the other hand, if bulls fail to break above this level, the price will likely remain in consolidation.
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Today, Thorne unveiled its new Creatine Campaign, spotlighting the supplement’s wide-ranging benefits, including performance, endurance and cognition.
The campaign features the musical icon, Ciara, who is also an entrepreneur, philanthropist and mother.
Together, they aim to challenge the long-held notion that creatine is just for bodybuilders and athletes, instead showcasing its benefits for anyone seeking to support overall health and performance.
With her newly released album CiCi and hectic schedule both on and off the stage, Ciara requires peak mental and physical endurance to maintain her everyday routine.
“I know it all looks easy, but being and staying at peak performance is a lot more than just hours of rehearsal in the studio,” said Ciara.
“My focus and top priority is always finding ways to better myself holistically, which starts with what goes into my body each and every day.”
“I’ve been a long-time fan of Thorne and love that I can trust their science-backed supplements – notably creatine – to support not just my overall physical well-being, but to help me stay sharp and maintain endurance.”
Creatine is a naturally produced amino acid, found primarily in the muscles and in the brain.
It is the most extensively studied supplement currently on the market.
Thorne has formulated its creatine supplement using micronised creatine monohydrate, which allows for superior dissolvability and absorption.
It is also NSF Certified for Sport, meaning each batch of Thorne’s creatine is tested to ensure the absence of nearly 300 substances banned by major athletic organisations.
“Creatine isn’t new by any means, but it does offer so much more than the main buzzwords we so often hear when it comes to the product,” said Mary Beech, Chief Growth Officer at Thorne.
“The campaign taps further into Thorne’s broader Thorne For platform and shines light on the fact that creatine is for everyone with a broad range of science-backed benefits across performance, endurance and cognitive focus.”
Thorne will continue to enhance its creatine offerings, launching additional creatine products over the next several months.
XRP price today is trading at $2.88, holding a fragile base above $2.84 support while pressing into short-term resistance at the 100-EMA. The setup has gotten a lot of attention again as traders weigh the October ETF decision window against technical compression. This could change the outlook for XRP.
On the 4-hour chart, XRP has been grinding higher off the $2.77–$2.84 accumulation range. Buyers have defended this zone repeatedly, with the 200-EMA at $2.82 acting as a backbone for bullish sentiment. Overhead, immediate resistance aligns at $2.92–$2.93, where the 100-EMA and trendline converge.
Momentum indicators show that things are getting stronger. RSI has gone above 59, which means that bullish momentum is getting stronger. At the same time, MACD is flattening, which means that the market may be moving from a neutral bias to a positive momentum. A decisive break above $2.93 would expose the broader downtrend line near $3.10, setting the stage for a retest of $3.20.
Web3 Gaming’s Untapped Potential: Only 0.2% of TAM Captured, Signaling Massive Growth for Crypto Traders
Web3 gaming is poised for explosive expansion, having captured just 0.2% of its total addressable market (TAM), according to Robbie Ferguson, co-founder of Immutable. This insight, shared on September 8, 2025, highlights the nascent stage of the sector, with Immutable Play launching only at the start of last year. For cryptocurrency traders, this underscores a prime opportunity in tokens like IMX, the native asset of the Immutable ecosystem, which focuses on blockchain-based gaming. As the broader crypto market evolves, IMX’s price has shown resilience, trading around $1.50 in recent sessions, with a 24-hour volume exceeding $50 million on major exchanges. This low TAM penetration suggests that Web3 gaming could drive significant inflows, potentially boosting IMX’s market cap from its current $2.5 billion toward higher valuations as adoption ramps up. Traders should monitor key support levels at $1.40 and resistance at $1.70, where breakout patterns could signal entry points for long positions amid growing institutional interest in gaming NFTs and play-to-earn models.
The statement from Ferguson emphasizes that ‘we’ve barely started,’ pointing to untapped potential in integrating blockchain with mainstream gaming. From a trading perspective, this narrative aligns with rising trends in decentralized entertainment, where tokens like IMX benefit from on-chain metrics such as increasing transaction volumes and active wallets. For instance, Immutable’s layer-2 scaling solution for Ethereum has processed over 1 million transactions in recent months, correlating with ETH’s performance, which hovers near $3,000. Crypto analysts note that as Bitcoin (BTC) stabilizes above $60,000, altcoins in niche sectors like gaming often see amplified gains during bull cycles. Traders can capitalize on this by watching for correlations: if BTC surges 5% in a week, IMX has historically followed with 10-15% upticks, based on data from the past year. Incorporating technical indicators like the Relative Strength Index (RSI) around 55 suggests IMX is neither overbought nor oversold, presenting balanced trading opportunities. Moreover, partnerships with major game studios could act as catalysts, driving trading volume spikes and price volatility ideal for day traders targeting quick profits.
Market Sentiment and Institutional Flows in Web3 Gaming Tokens
Market sentiment around Web3 gaming remains bullish, fueled by the sector’s low penetration rate and innovations like Immutable Play. This platform, designed for seamless NFT integration in games, positions IMX as a frontrunner in a market projected to reach $50 billion by 2030, per industry reports. For stock market correlations, traders should note how tech giants like those in the Nasdaq influence crypto gaming tokens; for example, when gaming stocks rally, IMX often sees sympathetic moves due to shared investor bases. Recent on-chain data shows a 20% increase in IMX holders over the last quarter, indicating growing retail and institutional flows. Trading strategies could involve pairing IMX with ETH for hedging, especially as Ethereum’s upgrades enhance scalability for gaming dApps. Key resistance at $2.00, if broken, might lead to a 30% rally, supported by historical patterns from 2024 bull runs. Conversely, downside risks include broader crypto corrections, but with only 0.2% TAM captured, long-term holders may view dips as buying opportunities, emphasizing accumulation below $1.30.
In terms of broader implications, this early-stage development in Web3 gaming invites comparisons to the DeFi boom of 2021, where underpenetrated markets led to exponential token growth. Crypto traders focusing on AI-enhanced gaming—such as procedural content generation—might explore synergies with AI tokens like FET or RNDR, which could see cross-market lifts. For instance, if AI integrations boost Web3 adoption, IMX trading pairs against these tokens could offer arbitrage plays. Volume analysis reveals average daily trades of 30 million IMX units, with peaks during gaming event announcements. To optimize trades, use moving averages: the 50-day MA at $1.45 provides a solid baseline for swing trading. Overall, Ferguson’s tweet serves as a reminder of the sector’s infancy, encouraging traders to position for multi-year growth while managing risks through diversified portfolios including BTC and ETH anchors.
Finally, for those eyeing entry, current market indicators point to a consolidation phase, with potential for upward momentum as more games launch on Immutable. This could translate to trading volumes doubling in the coming months, per on-chain forecasts. By focusing on concrete data like these, traders can navigate the evolving landscape of Web3 gaming with informed strategies, turning low TAM capture into high-reward opportunities.
The (Brent) price soars high in its last intraday trading, taking advantage of forming a positive divergence on the (RSI), with the emergence of the positive signals from there, and the price gad previously benefited from the stability of the key support at $65.00, gaining positive momentum that intensified these signals, in attempt to recover some of the previous losses on the short-term basis, with the continuation of the negative pressure that comes from its trading below EMA50, decreasing the chances for the recovery.
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The pair’s near-term technical outlook suggests that the bullish bias remains intact.
The US Dollar (USD) could struggle to attract buyers after August jobs data.
GBP/USD stays in a consolidation phase above 1.3500 after rising more than 0.5% on Friday. The pair remains technically bullish in the short term.
Pound Sterling Price Last 7 Days
The table below shows the percentage change of British Pound (GBP) against listed major currencies last 7 days. British Pound was the strongest against the Canadian Dollar.
USD
EUR
GBP
JPY
CAD
AUD
NZD
CHF
USD
-0.26%
-0.09%
0.50%
0.61%
-0.54%
-0.55%
-0.44%
EUR
0.26%
0.17%
0.69%
0.88%
-0.28%
-0.29%
-0.18%
GBP
0.09%
-0.17%
0.40%
0.71%
-0.45%
-0.45%
-0.29%
JPY
-0.50%
-0.69%
-0.40%
0.18%
-1.02%
-1.01%
-0.90%
CAD
-0.61%
-0.88%
-0.71%
-0.18%
-1.13%
-1.15%
-0.99%
AUD
0.54%
0.28%
0.45%
1.02%
1.13%
-0.01%
0.15%
NZD
0.55%
0.29%
0.45%
1.01%
1.15%
0.00%
0.16%
CHF
0.44%
0.18%
0.29%
0.90%
0.99%
-0.15%
-0.16%
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
Growing expectations for multiple Federal Reserve (Fed) rate cuts following the disappointing August labor market data weighed heavily on the US Dollar (USD) heading into the weekend.
The Bureau of Labor Statistics reported that Nonfarm Payrolls (NFP) rose by only 22,000 in August. This reading missed the market expectation for an increase of 75,000 by a wide margin. In this period, the Unemployment Rate edged higher to 4.3% from 4.2% in July, as anticipated. On another concerning note, the BLS’ press release showed that June’s NFP increase was revised down by -27,000, from 14,000 to -13,000.
According to the CME FedWatch Tool, markets are currently pricing in about a 75% probability that the Fed will lower the policy rate by a total of 75 basis-points (bps) this year, up from about 40% early last week.
The US economic calendar will not feature any high-impact data releases on Monday. Hence, investors could react to changes in risk perception.
In the European session, US stock index futures gain between 0.2% and 0.35%. A bullish opening in Wall Street could put additional weight on the USD’s shoulders and allow GBP/USD to continue to stretch higher in the second half of the day.
GBP/USD Technical Analysis
The Relative Strength Index (RSI) indicator on the 4-hour chart stays near 60 and GBP/USD continues to trade above the 20-day, 50-day and 100-day Simple Moving Averages (SMAs), suggesting that the bullish bias remains intact.
On the upside, 1.3540 (Fibonacci 61.8% retracement of the latest downtrend) aligns as the next resistance level before 1.3600 (static level, round level) and 1.3640 (Fibonacci 78.6% retracement). Looking south, support levels could be spotted at 1.3470-1.3460 (50-day MA, 100-day SMA), 1.3440 (200-period SMA) and 1.3390-1.3400 (Fibonacci 38.2% retracement, round level).
Pound Sterling FAQs
The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data.
Its key trading pairs are GBP/USD, also known as ‘Cable’, which accounts for 11% of FX, GBP/JPY, or the ‘Dragon’ as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE).
The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of “price stability” – a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates.
When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money.
When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects.
Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP.
A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall.
Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period.
If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
