Important events today:

08:30 UTC: GBP – Composite PMI Index.

12:30 UTC: USD – Trade Balance.

On Tuesday, the GBP/USD pair declined, briefly testing below the 1.3100 mark. The dollar saw increased trading activity after fresh U.S. PMI data fell short of market expectations, which once again heightened investor concerns about a potential U.S. recession.

Wednesday in the UK is expected to be light on data, with little noteworthy except for the low PMI figures for August. This week, the key focus for market participants remains the U.S. employment data.

The U.S. ISM Manufacturing PMI for August came in below expectations at 47.2, missing the median forecast of 47.5. Despite a mild rebound from July’s multi-month low of 46.8, it failed to inspire markets, giving already cautious investors an excellent reason to pull back from the recent one-sided tilt towards “bullish” expectations.

Friday’s U.S. Non-Farm Payrolls (NFP) report holds significant importance. It represents the last round of key U.S. labor data before the Federal Reserve (Fed) announces its latest rate decision on September 18. Friday’s NFP report is expected to set the tone for market expectations regarding the depth of the Fed’s rate cut, as investors are already fully anticipating the start of a new rate-cutting cycle this month.

Recommendations: Trading primarily with buy orders at the price level of 1.3160. Consider sell orders at the price level of 1.3080.