GBPUSD: BUY 1.3480, SL 1.3450, TP 1.3580 | 02 Junio 2025

An event to watch out for today:

15:30 EET. USD - Core PCE Price Index

GBPUSD:

GBP/USD showed an unstable recovery on Thursday, rising back to the 1.3500 mark, as markets prepare for Friday's release of the latest US inflation data on the Personal Consumption Expenditure (PCE) index.

US President Donald Trump's “Executive Order on Imposing Retaliatory Tariffs Worldwide” faced its first serious legal challenge after US trade court judges ruled against it. The tariffs remain in place for now as the Trump administration appeals the decision. However, investors face a long and difficult road ahead as they continue to wait for some clarity on policy from the Trump administration.

The US PCE inflation index for April will be released on Friday and will be the last key indicator of the week. Average market forecasts suggest that annual figures will continue to decline, but in the near term, the curve should start to rise as the direct impact of Trump's tariffs on prices begins to be reflected in the underlying data. The PCE inflation index for April is expected to decline to 2.5% year-on-year from 2.6%, while the monthly figure is forecast to rise to 0.1% from zero in March. It will take some time for the full impact of tariffs on inflation indicators to manifest, and most of the import duties imposed only came into effect at the end of the PCE reporting period.

Trading recommendation: BUY 1.3480, SL 1.3450, TP 1.3580

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