GBPUSD: SELL 1.3330, SL 1.3350, TP 1.3230 | 09 May 2025

Events to pay attention today:

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

14:00 EET. USD - Bank of England Key Interest Rate Decision

GBPUSD:

GBP/USD was down six-tenths of a per cent on Wednesday as markets continued to hold on to the safe-haven US dollar. The Federal Reserve (Fed) left rates unchanged as markets had expected, but Fed policymakers, still adopting a wait-and-see stance, curbed risk appetite during the midweek market session. The Bank of England (BoE) will hold its own rate meeting on Thursday and is expected to cut rates by another quarter point.

Forex Today: All eyes on the Bank of England

Market sentiment declined after Fed Chairman Jerome Powell's press conference. He said that US trade tariffs could hamper the Fed's inflation and employment targets this year. Powell warned that continued policy instability could force the Fed to take a ‘wait-and-see’ approach to interest rates. While the Trump administration's tariffs have weighed heavily on consumer and business sentiment, the lack of significant negative economic data makes it difficult for the Fed to justify an immediate change in interest rates.

Powell: The right thing to do is to wait for further clarity

The Bank of England is expected to cut the rate by a further quarter point at its upcoming meeting on Thursday, marking the fourth rate cut since it peaked in 2023. The Bank of England's Monetary Policy Committee (MPC) is expected to vote nine to one in favour of another rate cut in an attempt to support the faltering UK economy.

Trading recommendation: SELL 1.3330, SL 1.3350, TP 1.3230

Our company provides an opportunity to earn income not only from your trading. By attracting clients within the affiliate programme, you can get up to $30 per lot!