By ForexMansion.com
The undergoing week will witness the release of final growth data for the fourth quarter which is expected to affect the pound movements if it was revised further to the downside as it will increase the bleakness of the outlook for the British economy, which will actually move in line with Osborne’s latest growth forecasts announced in last week’s budget report which included a cut in UK growth prospects for 2011 and 2012.
What may add to concerns are the anticipations of having an ease in manufacturing sector’s expansion to 60.6 in March from the prior 60.5 as this will raise worries with regard the first quarter growth, thereby may add further negativity for the pound.
GDP figures due this week are expected to remain unrevised at 0.6% contraction on the quarter and 1.5% expansion on the annual basis. Looking at other important aspects, such as the tremendous rise in inflation to 4.4% in February and the surge in unemployment to 8.0% in the three months ending January, the possibility of seeing an interest rate hike in April is not far off, which will probably give an upside impetus to the sterling.
