GBPUSD: BUY 1.3280, SL 1.3250, TP 1.3370 | 25 Abril 2025

Event to watch out for today:

15:30 EET. USD - Number of Initial Jobless Claims in the US

GBPUSD:

The GBP/USD pair is gaining strength and approaching 1.3270, breaking a two-day losing streak in the early Asian session on Thursday. The US Dollar (USD) is weakening against Cable due to uncertainty surrounding Trump's trade policies.

US President Donald Trump's administration said it has already held talks with 90 countries over tariffs. The US will impose tariffs on China within the next two to three weeks, and it is up to China to decide how soon the tariffs can be reduced.

In addition, Trump said Wednesday that tariffs of 25 per cent on cars imported from Canada to the U.S. could be raised as Trump is interested in strengthening U.S. auto manufacturing and reducing dependence on foreign-made cars. The uncertainty with Trump's tariffs is worsening the economic outlook and sentiment, which is putting pressure on the US dollar.

On the other hand, rising bets on a rate cut by the Bank of England at its May meeting could undermine the Pound Sterling (GBP) in the near term. According to LSEG, financial markets have priced in a nearly 82 per cent chance of a Bank of England interest rate cut next month as the fallout from Donald Trump's developing trade war continues to take its toll on the global economy.

Later on Thursday, weekly initial jobless claims will be released in the US, along with the Chicago Fed's National Activity Index, durable goods orders and existing home sales. On Friday, the focus will be on UK retail sales data for March, which is expected to decline by 0.4% month-on-month after a 1.0% increase in February.

Trading recommendation: BUY 1.3280, SL 1.3250, TP 1.3370

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