GBPUSD:
The GBP/USD exchange rate experienced a decline following a series of tariff threats issued by US President Donald Trump. However, subsequent to the imposition of tariffs on Canada and Mexico being deferred by the Trump administration for a period of 30 days, global risk markets demonstrated a recovery. The likelihood of US tariffs on the UK remains low, and the cable strengthened to 1.2450 by the close of Monday’s trading session.
The Bank of England (BoE) is scheduled to hold its next rate meeting later this week, and markets are largely anticipating the likelihood of another rate cut. The Bank of England’s Monetary Policy Committee (MPC) is expected to vote eight to one in favour of cutting interest rates by another quarter point to 4.5%, with one abstention in favour of keeping rates unchanged for another meeting.
On Friday, the release of the US Non-Farm Payrolls (NFP) is anticipated. The employment data is unlikely to have a significant impact this week. The US labour market is stable, with geopolitical headlines being the main focus this week.
Trading recommendation: We follow the level of 1.2400, when fixing below we consider Sell positions, when rebounding we consider Buy positions.
Origin: FreshForex
