By ForexMansion.com

 

The main focus will be on manufacturing data as at 14:00 GMT the US will release ISM manufacturing for April, as forecasts refer to a drop in the index to 59.6 from the prior 61.2, while the UK lacks fundamentals. 

In the interim, investors expect the BoE to raise interest rate before the Fed after the Bernanke’s announcement last week, following the rate decision, as he vowed to hold interest rate low and continue the bond-purchase program which expires in June, to reinforce growth; the thing that increased speculations that the Fed will not tighten monetary policy any soon, while the BoE, on the flip side, is projected to raise borrowing cost this quarter, especially after the 0.5% expansion recorded in the first quarter. Thus, the outlook for the pair is going to be to bullish.  

Originally posted here

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