GBPUSD: SELL 1.2870, SL 1.2950, TP 1.2760 | 10 Marzo 2025

Event to pay attention to today:

15:30 EET. USD - Non-Farm Employment Change

GBPUSD:

On Thursday, the GBP/USD currency pair experienced a slight decline, bringing an end to the British pound's notable three-day growth of 2.57% against the US dollar since the beginning of the week.The recent correction in expectations of a central bank rate reduction has led to a decline in the anticipated interest rate differential, resulting in a significant rebalancing within currency markets.

Rates markets are now pricing a Bank of England (BoE) rate cut of less than 50bp in 2025, a sharp reduction in rate cut expectations as central banks continue to grapple with stagnant inflation.Despite the weakening of the UK domestic economy, which would normally prompt the Bank of England to retaliate with rate cuts, still high inflation figures tie the hands of policymakers.

US President Donald Trump has announced a temporary postponement of tariffs on all goods included in the USMCA agreement he negotiated during his first term, in a further twist to his tariff plans. Despite this, markets have not shown enough risk appetite to return to high levels.On Friday, US Non-Farm Payrolls (NFP) data will regain importance as investors begin to watch economic data in earnest. While the US economy is generally in a healthy state, cracks are beginning to appear in the labour market, and a fresh round of inflationary pressures, largely related to tariff concerns, is also dampening growth expectations.

Trading recommendation: SELL 1.2870, SL 1.2950, TP 1.2760

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