GBPUSD:
The GBP/USD exchange rate fell back to 1.3450 after global markets revised their expectations for interest rate cuts following statements by Federal Reserve Chairman Jerome Powell at the end of last week. Powell’s speech at the Jackson Hole economic symposium sparked expectations of interest rate cuts ahead of the weekend, but investors are now eagerly awaiting the latest US consumer price index (PCE) data, which will be released this week.
For traders trading the pound sterling, economic data in the UK is fairly quiet; London markets were closed for a long weekend, so Tuesday will be the first day that domestic pound sterling markets return to work since Friday. The data is dominated by decent US economic indicators, culminating in the release of the latest PCE inflation data scheduled for Friday.
Trading recommendation: BUY 1.3485, SL 1.3415, TP 1.3635
Origin: FreshForex
