GBPUSD: BUY 1.3060, SL 1.3000, TP 1.3150 | 04 Abril 2025

Event to watch out for today:

11:30 EET. GBP - Composite PMI

15:30 EET. USD - Initial Jobless Claims Number

GBPUSD:

GBP/USD set fresh trading at six-month highs on Wednesday after the Trump administration unveiled tariffs that were generally better than many investors had feared, based on President Donald Trump's cavalcade of tariff threats since taking office in the White House 72 days ago. The exact details of the tariff proposals remain complicated, but U.S. consumers can expect a flat 10 percent tariff on all U.S. imports, an additional 25 percent tariff on all cars and auto parts, and various “reciprocal” tariffs levied at different levels depending on the country. Donald Trump also took the opportunity to remind the world that he still intends to impose additional tariffs on copper, microchips, and other key imported consumer goods that the entire U.S. economy relies on.

With tariffs driving up consumer prices in the coming months, and consumer markets unable to find a clear way out to receive foreign goods without paying high import taxes, inflationary pressures are likely to rise in the near term and remain high for much longer than anyone would like. As Federal Reserve (Fed) policymakers have noted, uncertainty over the Trump administration's trade policies is likely to keep interest rates higher for even longer than previously expected.

The UK economic data release schedule remains loose this week, however, fresh US Nonfarm Payrolls (NFP) employment data is due later this week. The publication of NFP could be an important trigger point for markets as the US economy transitions into a post-tariff economic environment, and the March labor data will serve as an “indicator” of the impact of the Trump team's tariff plans.

Trading recommendation: BUY 1.3060, SL 1.3000, TP 1.3150

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