GBPUSD: BUY 1.3550, SL 1.3530, TP 1.3640 | 16 June 2025
16 June 2025, GBP/USD
Event to pay attention today:
17:00 EET. USD - University of Michigan Consumer Sentiment Index
GBPUSD:
On Thursday, the GBP/USD rose to a new 40-month high, closing above 1.3600 for the first time in more than three years. Investor sentiment across the broader market improved after US inflation data, as reflected in the Producer Price Index (PPI), came in below expectations, causing the US dollar to fall as investors began betting again on a Federal Reserve (Fed) rate cut in September.
Industrial and manufacturing output in the UK continues to decline, falling faster than expected in April. US PPI inflation also fell in May, allaying fears of inflationary pressures caused by the introduction of tariffs. However, the Trump administration's turbulent policy decisions could still trigger a new round of price volatility and are expected to lead to higher inflation readings in the coming months.
The University of Michigan (UoM) Consumer Sentiment Index for June will be released on Friday, ending the trading week, and average market forecasts expect a general recovery in the results of the aggregate consumer sentiment survey. Investors will also be closely watching the UoM's one-year and five-year consumer inflation expectations, which remain at uncomfortably high levels of 6.6% and 4.2%, respectively.
Trading recommendation: BUY 1.3550, SL 1.3530, TP 1.3640
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The author's opinion reflects their personal view and is not an investment recommendation. The company is not responsible for any trading results based on the provided analytical data.
