GBPUSD: BUY 1.3360, SL 1.3340, TP 1.3460 | 08 May 2025

Event to pay attention today:

21:00 EET. USD - FOMC Key Interest Rate Decision

21:30 EET. USD - FOMC Press Conference

GBPUSD:

GBP/USD rose on Tuesday, rising four-tenths of a percent on the day to test 1.3400 amid headlines of a possible trade deal between the US and the UK, which would see the UK avoid a hit on trade tariffs actively enforced by the Trump administration.

Recently, the Fed has been under pressure on several fronts to lower interest rates: market participants are always on the lookout for cheaper financing options, and the Trump administration has been incredibly insistent that the Fed's job should be to lower interest rates to make servicing US debt cheaper. This is largely at odds with the Fed's dual mandate of maintaining full employment and curbing price volatility, but these key aspects of the Fed's mandate are largely lost on US President Donald Trump.

The upcoming Federal Reserve (Fed) rate meeting on Wednesday remains the key event of the week for markets. While markets generally expect the Fed to continue to hold rates further, investors will be closely monitoring comments from policymakers, particularly Fed Chairman Jerome Powell's statement, looking for any signs that the Fed may move into a rate-cutting cycle sooner rather than later.

Trading recommendation: BUY 1.3360, SL 1.3340, TP 1.3460

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