The GBP/USD pair is recovering the previous session's losses, trading near 1.28900 during Asian hours on Tuesday. The pair is rising on the back of a weaker US dollar amid concerns that tariff policy uncertainty could lead the US economy into recession.
Weaker-than-expected U.S. employment data for February reinforced expectations of multiple rate cuts by the Federal Reserve (Fed) this year. LSEG data shows that traders now expect a total of 75 basis points (bps) in rate cuts, with the June rate cut already fully priced in.
However, Fed Chairman Jerome Powell reassured markets that the central bank sees no immediate need to adjust monetary policy despite growing uncertainty. San Francisco Fed Chair Mary Daly supported that view on Sunday, noting that rising uncertainty in the business environment may reduce demand but is not a reason to change the interest rate.
As the Federal Reserve enters the black period ahead of its March 19 meeting, the central bank's comments this week will be limited. Investors now await the release of the February Consumer Price Index (CPI) on Wednesday to get further insight into inflation trends.
Trading recommendation: SELL 1.28900, SL 1.29500, TP 1.27800
Weaker-than-expected U.S. employment data for February reinforced expectations of multiple rate cuts by the Federal Reserve (Fed) this year. LSEG data shows that traders now expect a total of 75 basis points (bps) in rate cuts, with the June rate cut already fully priced in.
However, Fed Chairman Jerome Powell reassured markets that the central bank sees no immediate need to adjust monetary policy despite growing uncertainty. San Francisco Fed Chair Mary Daly supported that view on Sunday, noting that rising uncertainty in the business environment may reduce demand but is not a reason to change the interest rate.
As the Federal Reserve enters the black period ahead of its March 19 meeting, the central bank's comments this week will be limited. Investors now await the release of the February Consumer Price Index (CPI) on Wednesday to get further insight into inflation trends.
Trading recommendation: SELL 1.28900, SL 1.29500, TP 1.27800
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More analytical information and promotions on FreshForex website cutt.ly/mw3aPjui
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.