GBPUSD:
The GBP/USD pair remains stable after four days of growth, trading around 1.3580 during Asian trading hours on Thursday.
Meanwhile, the European Union (EU) and the United States (US) are close to reaching a deal that would impose 15% tariffs on EU goods imported into the US. In addition, on Tuesday, US President Donald Trump announced a major tariff agreement with Japan that would impose 15% tariffs on Japanese exports.
However, the decline in the US dollar may be tempered by easing concerns about the independence of the Federal Reserve (Fed).
In the United Kingdom (UK), traders are likely to focus on the S&P Purchasing Managers’ Index (PMI) data due out on Thursday. The report is expected to show a slight improvement in manufacturing and growth in the services sector in July.
The Bank of England (BoE) is expected to temporarily suspend sales of long-term GILTS due to low demand from traditional buyers such as pension funds. Meanwhile, traders have slightly lowered their expectations for Bank of England policy easing, although they still forecast two rate cuts in 2025.
Trading recommendation: BUY 1.3585, SL 1.3510, TP 1.3675
Origin: FreshForex
