The GBP/USD started the week with heavy volatility and fluctuations ahead of a busy week for both nations, while trading volumes remained tight with UK markets out on Easter Monday.
UK returns to the market on Tuesday with calmness as investors focus on the fundamentals ahead. The UK economy is to report the first quarter GDP this week amid high skepticism as investors feel that the expansion might miss projections as the recovery lost momentum and especially following the fourth quarter contraction of 0.5 percent.
Growth in the US is to be reported after and expected with slower pace of expansion and that will affect the positive sentiment in the market over the pace of the recovery. The bets for BoE tightening are slimming further with bleak uncertainty over the outlook for the recovery.
The UK GDP might support the case for sterling gains this week, especially as the market sees the FOMC rate decision to be focused on a steady monetary policy from the Feds for sometime.
With the lack of data from UK on Tuesday the focus will be on the US consumer confidence due for release at 14:00 GMT. Confidence for April is expected with a rise to 64.5 from 63.4 supporting the market sentiment to remain upbeat easing some pressure of sterling shall the dollar remain weak.
Originally posted here
Read more about forex technical analysis, forex fundamental analysis and forex news on ForexMansion.com
About ForexMansion.com:
www.ForexMansion.com is a part of the Finance Mansion Network which operates global financial websites. Our goal is to provide our readers with the most accurate, quality and up-to-date technical analysis, fundamental analysis and news in order to assist them in making the right financial decisions.
The Finance Mansion Network includes www.FinanceMansion.com,www.ForexMansion.com, www.StocksMansion.com, www.CommoditiesMansion and many more.
