Important events today:

08.07 18:00 UTC: USD – FOMC Meeting Minutes.

The Pound approaches today’s session with a stronger domestic footing than the Euro. A fresh survey from recruitment companies showed a revival in temporary hiring and an acceleration in starting salaries, which is crucial for the Bank of England as it closely monitors wage pressure. Even with a slowdown in services business activity, such signals reduce the scope for an overly dovish stance from the regulator.

The US Dollar keeps its ground because of geopolitical risks and upcoming central bank reports, which prevents the GBPUSD from growing too fast. Nevertheless, sterling finds local backing through rising wages and diminishing budget worries, as investors feel more comfortable about the political shift while fiscal limitations remain in place.

Under the base-case scenario, the GBP/USD advantage may persist if investors continue to factor in wage resilience and the Bank of England’s lack of readiness to discuss rate cuts. Risks for the pair are tied to renewed dollar strengthening and rising oil prices, but fresh British data gives the pound its own argument. Given current conditions, the buying idea looks justified.

Recommendations: BUY 1.3355, SL 1.3325, TP 1.3445.