Last week, the British pound (GBP) reached this year’s highest value at 1.3788, but since then, it has slowly gone down.
Today, the market is watching the UK’s May GDP report closely. There are worries about Finance Minister Reeves’ plan to reduce the budget deficit.
Last month, GDP fell by 0.3% because the service sector did badly. This month, people expect it to improve slightly to +0.1%.
But if today’s GDP is lower than expected—especially since June’s retail sales dropped and the job market is getting weaker—there’s a higher chance the Bank of England may lower interest rates in August. If that happens, the pound may fall.
Even if the GDP meets expectations, worries about the government’s financial problems may stop the pound from rising much.
GBP/USD Forecast Range: 1.3460 – 1.3610
Note: This information does not guarantee profits. Please make your own decisions when trading.