Русский
GBPUSD:
The GBP/USD pair starts the new week on a subdued note and fluctuated within a narrow trading range around 1.2930 during the Asian session. However, the fundamental backdrop calls for some caution before positing a significant corrective pullback in spot prices from the four-month peak near 1.2990 reached last Wednesday.
The US Dollar (USD) is languishing near multi-month lows amid concerns that US President Donald Trump’s tariffs and retaliatory measures by other countries could hurt the US economy. In addition, lower-than-expected US inflation and signs of a cooling US labor market could force the Federal Reserve (Fed) to cut interest rates several times this year. This, in turn, keeps Dollar bulls on the defensive and serves as a tailwind for the GBP/USD pair.
Betting on further Fed policy easing was supported by the University of Michigan survey data released on Friday, which showed that the consumer sentiment index fell to a near 2-1.5-year low in March. In addition, inflation expectations rose amid concerns that Trump’s aggressive economic policies will lead to higher prices. In addition, the overall positive tone in Asian stock markets undermined the safe-haven US Dollar.
The British Pound (GBP), on the other hand, is struggling to attract buyers after Friday’s disappointing domestic data, which showed that the UK economy unexpectedly contracted by 0.1% in January….
Trading recommendation: SELL 1.2930, SL 1.2990, TP 1.2860
Origin: FreshForex
