Event to watch out for today:
09:00 GMT+3. GBP – Unemployment Rate
15:30 GMT+3. USD – Producer Price Index
GBPUSD:
The Pound-Dollar pair is attracting buyers in the Asian session on Tuesday and has been climbing towards a fresh daily peak around 1.2775-1.2780 in the last hour. However, spot prices remain within the previous day’s wider trading range as traders wait with interest for important macroeconomic data from the UK and the US before placing new directional bets.
The monthly UK employment report and US Producer Price Index (PPI) will be released later today, while Wednesday will be followed by the latest UK and US consumer inflation data. These data, as well as the release of preliminary UK second quarter GDP data on Thursday, will play a key role in shaping sentiment around the British Pound and provide fresh impetus to the GBP/USD pair.
At the same time, expectations that the Bank of England (BoE) will cut borrowing costs two more times this year, following the first rate cut since 2020 on August 1, could continue to undermine the GBP’s position. The US Dollar (USD), on the other hand, has struggled to attract meaningful buyers amid rising bets on more rate cuts by the Federal Reserve (Fed). This prompts caution before making bullish bets on the GBP/USD pair.
Trading recommendation: Trade predominantly with Buy orders from the current price level.
Origin: FreshForex
