Rocky road ahead for pound?
Rolling back into the office today after indulging in my own body weight in chocolate, it may look at first glance as if not much has changed on the markets with the rates seemingly pretty similar to where we left them on Thursday. However, there has been a great deal of volatility in the past few days as the markets have remained open.
The big mover was the US Dollar on the back of weaker than expected Non Farm Payrolls Data on Friday. This caused the Dollar to weaken against all currencies and we saw Cable (GBPUSD) head back to the near 1.5000 levels. This weakness has not been sustained and yesterday we saw the Dollar reclaim some of its losses.
In the UK, we had the fallout from the televised election debate and as we edge closer to May 7th, expect data to fall further into the background as uncertainty grips and scares the markets. Services PMI are due out today and there is a flurry of data releases this week as we build up to the interest rate decision on Thursday. Of course, no decision is expected to be made on Thursday but there seems to be a current feeling that a rate hike is being pushed further and further back. This is due to a sense that analysts may have been overstating the strength of the UK economy.
We also have Eurozone Services PMI and a return to normal trading levels today.