GBPUSD:
The pound holds near 1.33–1.34 thanks to a mix of moderate U.K. inflation and a steadier U.S. dollar index ahead of the Fed meeting. Slower price growth in retail indicators and recent official remarks reduce concerns about household purchasing power, supporting domestic demand and tax receipts.
From the U.S. side, the main intrigue is the Fed’s tone and guidance on the pace of policy easing amid softer inflation. Subdued U.S. Treasury yields lessen the dollar’s appeal as an alternative, while global risk appetite has improved. As a result, sterling gains an advantage as a major-economy currency without signs of acute stagflation.
London’s fiscal agenda remains in focus, but so far it brings no fresh shocks. If the Fed’s communication does not strengthen the dollar and U.K. data on consumption and labor hold up, the pair has room for a gradual move higher with risks kept under control.
Trading recommendation: BUY 1.3335, SL 1.3305, TP 1.3390
Origin: FreshForex
