Events to watch today:
15:15 EET. USD - ADP Non-Farm Employment Change
16:00 EET. USD - Federal Reserve Chair Kevin Warsh will deliver a speech
16:00 EET. GBP - BOE Governor Andrew Bailey Speaks
17:00 EET. USD - ISM Manufacturing PMI
GBPUSD:
Sterling enters July after revised UK economic data failed to ease concerns about the resilience of domestic demand. GDP expanded by 0.6% in the first quarter, but household disposable income declined, while April figures pointed to weaker momentum at the start of the second quarter. This may limit the economy’s ability to absorb high borrowing costs for an extended period.
Only for our readers: mention the one-time promo code MR20 in the support chat and get +20% on your next deposit of any amount. The maximum bonus amount is $500. Only one promo code can be applied to a deposit at a time.
The Bank of England kept its rate unchanged at 3.75% in June. However, calmer inflation and lower household inflation expectations reduce the need for further policy tightening in the near term. At the same time, changes in government have added uncertainty around fiscal policy. Markets will assess whether the new administration can balance stimulus plans with confidence in public finances.
The market backdrop remains challenging for GBPUSD. Higher US Treasury yields and stronger Federal Reserve rate expectations increase the appeal of the US dollar. Sterling could receive support from signs of stronger consumer spending or renewed services inflation, but recent data have not yet provided that confirmation. The base case therefore favours the US dollar and allows for further downside in the pair if the current news flow persists.
Trading idea: SELL 1.3250, SL 1.3280, TP 1.3160
Our company provides an opportunity to earn income not only from your trading. By attracting clients within the affiliate program, you can get up to $30 per lot!
Comments
Log in or sign up to join the conversation.