WEEKLY ANALYSIS: BEARISH PRESSURE MOUNTS. EUROPEAN INFLATION DATA AND UNITED STATES GDP EYED FOR NEXT DIRECTION
EUR/USD
Weekly Analysis: Price action was choppy last week, apart from Tuesday when we saw a strong bullish push that took the pair into 1.0800 resistance. The buyers remained in control but strength faded after Tuesday’s climb.
Technical Outlook
The pair has reached a strong resistance zone located between 1.0800 and 1.0850 and we can already see signs of bearish pressure: the Stochastic has reached overbought, candles have small bodies and long wicks and upside momentum is fading. During this week we expect another test of 1.0850, which will decide the next medium term direction. A break of said resistance will make 1.1060 the next target (not necessarily reached in one week), while a bounce will probably generate a drop into the 50 days Exponential Moving Average.
Fundamental Outlook
The week starts Monday with the release of the German IFO Business Climate, a survey with a very large sample size of about 7,000 German businesses, focused on their opinions regarding economic and business conditions for the next 6 months.
Tuesday the spotlight shifts towards the US Dollar for the release of the U.S. Consumer Confidence, another survey with a large sample size of about 5,000 households, focused on the respondents’ opinions regarding current and future economic conditions.
Thursday we take a look at German inflation with the release of the German Consumer Price Index and on the US Dollar side we have the U.S. Final Gross Domestic Product, which is the last version in the series of three and tends to be the least impactful but remains a notable indicator nonetheless.
Friday is a rather slow day, with the most notable indicator being the European Consumer Price Index, which shows changes in inflation across the EU.
GBP/USD
The Pound benefited from better than expected inflation readings last week and this was the main reason for the pair’s bullish bias. On top of that, the US Dollar seems weak against most of its counterparts and doesn’t show clear signs of strength.
Technical Outlook
The pair established the 50 days Exponential Moving Average as support last week (broke above it and then bounced off of it) and the next destination seems to be 1.2570. From a longer term perspective the pair is still in a range and this means we should pay attention to the overbought position of the Stochastic, which may be an early warning of a reversal. If 1.2570 cannot be broken we expect to see a drop into the 50 days Exponential Moving Average.
Fundamental Outlook
Almost the entire week lacks important releases and Friday will be the busiest day of the week, with 2 important indicators: the British Current Account, which shows the difference in value between imported and exported goods and services and the Final GDP, which is the main gauge of overall economic performance. Other than this, price action will be mainly driven by the technical aspect and the U.S. releases.
WEEKLY ANALYSIS: HUGE MARKET-MOVERS FOR THE US DOLLAR: FOMC MINUTES, NON-FARM PAYROLLS
EUR/USD
Weekly Analysis: Last week the pair’s direction was controlled almost completely by the bears, with price dropping strongly for four days and breaking the 50 days Exponential Moving Average.
Technical Outlook
Once the pair moved above 1.0850, it printed a long-tailed candle, showing rejection and quickly started to descend, breaking several support levels, as well as the 50 days EMA. This type of behaviour cannot be considered a simple retracement and instead, we expect a full scale reversal to the downside, with 1.0500 as main target. If the pair bounces higher at the current support (1.0650), we may see a move into 1.0800 but a break of that zone will depend on the fundamentals released this week.
Fundamental Outlook
The week opens Monday with the release of the U.S. Manufacturing PMI, a survey of purchasing managers that acts as an indicator of optimism and economic health. A more important release is scheduled Wednesday: the FOMC Meeting Minutes, which will offer insights into the reasons behind the latest interest rate vote. If the Minutes will show that the Fed is likely to hike more times than expected this year, the US Dollar will probably strengthen but either way, this is an event that should be treated with caution.
The last major event of the week is the release of the U.S. Non-Farm Payrolls, scheduled Friday. This is widely considered the most important U.S. jobs report and almost always has a very strong impact on the US Dollar; the indicator shows changes in the number of employed people during the previous month, excluding the farming industry, and higher values usually suggest that consumer spending will increase in the near future, a fact that strengthens the currency.
GBP/USD
The Cable had an interesting week, with mixed reaction but it remained trapped between support and resistance after a bounce at the 50 days Exponential Moving Average.
Technical Outlook
The drop from 1.2570 resistance followed by the bounce at the 50 days EMA can be considered a simple retracement, and one that was expected because on the lower timeframes the pair was clearly overbought. However, it must be noted that 1.2570 acted as strong resistance in the past and last week the pair failed once again to surpass it, so if this week we will see another bounce lower from this level, the bears are likely to take control. If this happens, the first barrier will become the 50 days EMA and the support at 1.2420; keep in mind that the pair is still in a range from a longer term perspective.
Fundamental Outlook
The Pound will be affected by three surveys this week: the Manufacturing PMI, Construction PMI and Services PMI, released Monday, Tuesday and Wednesday respectively. The surveys are derived from the opinions of purchasing managers regarding business and overall economic conditions in each sector and act as leading indicators of economic health. Higher numbers usually strengthen the Pound but the impact is often limited if the actual numbers match analysts’ expectations.
WEEKLY ANALYSIS: US DOLLAR STRENGTH – A SHORT-LIVED AFFAIR OR THE START OF A DOWNTREND?
EUR/USD
Weekly Analysis: Last week the pair had a very slow start, with choppy and almost sideways price action; however, the last couple of days made up for the previous lack of movement and the bears managed to take the pair below support.
Technical Outlook
After pausing at the 50 days Exponential Moving Average, the pair started to show some determination, making us anticipate a continuation of the current bearish momentum. If this is the case, price will probably move towards the support zone created between 1.0525 and 1.0495, which is also the place where the last move up originated, so it’s an important zone for medium term price action. It must be noted that the Stochastic is below its 20 level and the Relative Strength Index is approaching its oversold level; if both oscillators enter oversold and price reaches strong support, we will probably see a bounce up.
Fundamental Outlook
The first notable release of the week is the German ZEW Economic Sentiment, scheduled Tuesday. The survey shows the opinions of about 275 German professional investors and analysts regarding current economic conditions as well as a 6-month outlook; it acts as a leading indicator of optimism, with higher numbers strengthening the currency but the effect is usually mild.
The next releases are scheduled Thursday and will affect the US Dollar: the Producer Price Index (an indicator that shows changes in the price charged by producers for their goods) and the University of Michigan Consumer Sentiment, a survey of about 500 consumers that tries to gauge their opinions regarding current and future economic conditions.
Friday we take a look at Unites States inflation with the release of the Consumer Price Index and the same day the U.S. Retail Sales come out, showing changes in the total value of sales made through retail outlets. German banks will be closed in observance of Good Friday, so we expect volatility to be affected.
GBP/USD
After another failed attempt to move above 1.2570 resistance, the pair started to drift lower last week, breaking support and shifting short term control towards the short side. However, from a longer term perspective, the pair is still in a range.
Technical Outlook
The resistance at 1.2570 remains an important level that stopped rising prices once again and triggered a bounce lower, through the 50 days Exponential Moving Average. Even if there are some signs of bearish pressure (bounce at resistance, break of 50 EMA), the control doesn’t clearly belong to either side and the pair lacks momentum. The first level of importance is located at 1.2300, which acts as psychological support (big, round number) but also technical support because price bounced off of it in the past. To the upside, 1.2570 remains the first key level.
Fundamental Outlook
The first release for the Pound is scheduled Tuesday in the form of the Consumer Price Index, which is the main gauge of inflation and usually has a strong impact on the currency, with higher values strengthening it.
Wednesday we take a look at British jobs data with the release of the Claimant Count Change, an indicator that shows the change in the number of people who asked for unemployment related benefits, and usually weakens the Pound if it posts a higher number than expected.
Friday UK banks will be closed in observance of Good Friday and this will probably trigger irregular movement on Pound pairs.
WEEKLY ANALYSIS: U.S. PRESIDENT TRUMP SAYS DOLLAR IS ‘TOO STRONG’. DO THE MARKETS AGREE?
EUR/USD
Weekly Analysis: The pair climbed last week, following a comment made by U.S. President Trump regarding a “too strong” US Dollar but most of the rise was erased a day after and the week ended with price close to the opening point.
Technical Outlook
It is clear now that price reacts to the resistance at 1.0680, as seen from last week’s bounce, but it must be noted that the sellers couldn’t take the pair below 1.0600 so there is not enough traction on either side. The beginning of this week will be affected by the Easter holidays and we will most likely see alternating periods of low and high volatility but strictly from a technical point of view, our bias is bearish as long as the pair remains below the 50 period Exponential Moving Average and below 1.0680 resistance.
Fundamental Outlook
Monday most European banks will be closed, celebrating Easter Monday and no major economic indicators will come out. Volatility will most likely be affected and price may move erratically, so caution is recommended.
Tuesday the US Dollar will be affected by the release of the Building Permits, but the indicator lately has just a low-to-medium impact; Wednesday we take a look at European inflation with the release of the Final version of the Eurozone Consumer Price Index. Thursday lacks major releases and the week ends Friday with the German Services and Manufacturing PMIs as well as the U.S. Existing Home Sales. Overall we have a rather slow week ahead of us, without high impact market movers, so the main factor for direction will be the technical aspect.
GBP/USD
Last week was mostly controlled by the bulls but the resistance located at 1.2570 stopped the pair’s rise once again. Price remains in a range, without clear control from either side.
Technical Outlook
The rally was hindered by 1.2570 resistance but the short term momentum belongs to the bulls, so it’s very probable that we will soon see a break of the mentioned level. Until the pair moves outside the channel created by 1.2570 or and 1.2420, we expect to see choppy movement, characteristic to range-bound trading. For the time being, our bias is mostly neutral for this pair but given the US Dollar weakness seen last week, we anticipate a break of 1.2570 resistance.
Fundamental Outlook
UK banks will be closed Monday in observance of Easter and the week remains slow until Thursday when Bank of England Governor Mark Carney will deliver two speeches in Washington, one at the Institute of International Finance Policy Summit and the other at a Bank of France event. Friday the British Retail Sales are released, showing changes in the total value of sales made through retail outlets; this is usually a high impact indicator, which strengthens the currency if it posts numbers above expectations.
WEEKLY ANALYSIS: BRACE FOR A WILD WEEK: FRENCH ELECTION, ECB INTEREST RATE
EUR/USD
Weekly Analysis: Last week the bulls scored an important victory by moving the pair above the 50 days Exponential Moving Average but some of the gains were erased later in the week. Overall, price action was bullish, but key resistance (1.0800) was not broken.
Technical Outlook
Price is capped to the upside by the resistance at 1.0800 and to the downside by the 50 days EMA as well as several support levels. The last two days show candles with wicks in their upper and lower sides respectively, which is a sign of indecision but the focus early in the week will be on the French Presidential Election, which will generate increased volatility and possibly a strong move in one direction. For this reason, we recommend caution, especially during the first part of the week.
Fundamental Outlook
The first important release of the week is the German IFO Business Climate, scheduled Monday. This is a survey of about 7,000 businesses, derived from their opinions on current and future economic conditions. Also keep in mind that the French Presidential Election held on Sunday will probably have a strong impact on the Euro in the beginning of the week.
Tuesday the focus shifts towards the US Dollar for the release of the U.S. Consumer Confidence survey and Wednesday is a slow day, without any major economic releases.
Thursday will be the most important day of the week for the Euro as the European Central Bank meets to announce the interest rate. Soon after the announcement, ECB President Mario Draghi will hold a press conference, discussing the rate decision and answering journalists’ questions. Usually the conference creates strong volatility and possibly irregular price action.
The trading week finishes Friday with a potential market-mover for the US Dollar: the U.S. Advance version of the Gross Domestic Product. Out of the three versions of the GDP (Advance, Preliminary and Final), this is the earliest and tends to have the strongest impact.
GBP/USD
British Prime Minister May called for a snap General Election that will take place in June and this was the highlight of last week, triggering a huge move to the upside that took the pair above the long time resistance at 1.2770.
Technical Outlook
After breaking the top of the channel that confined the pair for a long time, price stopped between 1.2850 and 1.2770 and remained there for the rest of last week. The bias is now bullish but it must be noted that the Relative Strength Index and Stochastic have both reached overbought and this is an early sign that a bearish pullback will soon occur. The French Presidential will have an impact on the markets and this pair will probably be affected as well, thus we recommend caution, especially early in the week.
Fundamental Outlook
The Pound has a very slow week ahead in terms of economic indicator releases. The only major indicator is the British Preliminary Gross Domestic Product, scheduled Friday. This is the main gauge of an economy’s performance and usually strengthens the currency if it posts higher than expected numbers.
WEEKLY ANALYSIS: US DOLLAR BIG MOVERS AHEAD: FED INTEREST RATE, NON-FARM PAYROLLS
EUR/USD
Weekly Analysis: After the gap seen a week before, the pair started to move almost sideways and both bulls and bears seem to have lost interest. Part of this slow directional movement can be attributed to the lack of major releases last week.
Technical Outlook
After breaking 1.0850 the pair established resistance around 1.0945 and remained between the two levels for the entire week. Now the Relative Strength Index and the Stochastic are both overbought, which is usually an early indication that price may be coming down in the near future. The weekly gap is not closed and usually price returns to where the gap originated, so we may see an extended move down but this is not a certainty; also, the time it takes for the gap to close is unknown. For now the levels to watch are 1.0945 as resistance and 1.0850 as support; a break of either one may trigger an extended move in that direction.
Fundamental Outlook
Monday most banks across Europe will be closed, celebrating Labor Day and this is likely to generate irregular volatility and choppy price action, so caution is advised. On the US Dollar side we have the Manufacturing PMI, which is a survey derived from the opinions of purchasing managers regarding business and economic conditions.
Tuesday is a slow day but action picks up Wednesday when the Fed will announce the interest rate (no change expected from the current <1.00%) and the will release the FOMC Statement, which contains details about the reasons that influenced the rate decision.
Thursday we have another slow day, without major releases and the trading week finishes Friday with the always important Non-Farm Payrolls, an indicator that tracks changes in the number of employed people, excluding the farming industry.
GBP/USD
The pair continued last week the bullish momentum started when British Prime Minister May called for a snap general election, and exited the horizontal channel that confined it for more than a week.
Technical Outlook
Although the pair paused and moved sideways for more than a week, we didn’t see a clear retracement to the downside and such a move is due, considering the overbought condition of the Relative Strength Index and Stochastic. The current up move may extend into the resistance at 1.3050 but once and if it gets there, we expect a bounce lower. Also keep in mind that 1.3000 is a big round number and price will probably react to it as well.
Fundamental Outlook
Monday UK banks will be closed in observance of May Day and the rest of the week the Pound will be affected by the release of three Purchasing Managers’ Indexes: Tuesday the Manufacturing PMI comes out, followed Wednesday by the Construction PMI and Thursday by the Services PMI.
These are surveys of purchasing managers from the respective sectors, which act as leading indicators of economic health but usually the impact is low-to-medium; however, numbers above expectations tend to strengthen the Pound. Of course, the pair will be directly affected by the U.S. indicators released throughout the week.
WEEKLY ANALYSIS: FRENCH PRESIDENTIAL ELECTION: ROUND TWO
EUR/USD
Weekly Analysis: Last week the Fed decided to keep the rate unchanged as expected, they didn’t give strong hints about a June hike. The employment data released Friday was better than anticipated but the previous number was revised lower and overall the US Dollar weakened, allowing the pair to climb.
Technical Outlook
The previous week ended with price right on the psychological level at 1.1000. Usually the market reacts to big, round numbers and the Relative Strength Index is very close to overbought, so all this increases bearish pressure and might generate a move lower in the form of a pullback. However, it must be noted that the pair is in an uptrend, which was just renewed by the break of the previous high at 1.0945. If the psychological resistance at 1.1000 is broken easily, we expect the upside to prevail and the pair to move towards the next resistance, located at 1.1120.
Fundamental Outlook
Monday French banks will be closed in observance of Victory Day but the rest of Europe will do business as usual. The most important release of the day will be the German Factory Orders, an indicator that shows changes in the value of purchase orders placed with manufacturers. Keep in mind that Sunday the second round of the French Presidential Election takes place and we expect price action to be heavily affected throughout the beginning of the week.
Tuesday and Wednesday there are no notable releases on the schedule but action picks up a little Thursday with the U.S. Producer Price Index, an indicator that tracks changes in the price charged by producers for their goods. It has inflationary implications because a higher producer price ultimately leads to a higher consumer price, but the impact is not always notable.
Friday is a busy day for the US Dollar, with three important releases: the U.S. Consumer Price Index (a key gauge of inflation), the Retail Sales and the University of Michigan Consumer Sentiment, a survey that shows the opinions of about 500 consumers regarding economic and business conditions. Also Friday the G7 Meetings start, attended by central bankers from the 7 member states.
GBP/USD
Most of last week’s price action was ranging, with the pair trading closely above 1.2850. The strongest movement was seen Friday, on the back of U.S. employment data.
Technical Outlook
The previous resistance at 1.2850 was tested from above and price bounced higher, thus we can now consider this level support. The pair is making higher highs and higher lows, indicating that it is currently in an uptrend, so we expect to see a touch of the next level of importance, located at 1.3050; 1.3000 is also important because it is a big, round number. The pair is likely to retrace lower when one of these levels is touched, but after said retracement, the uptrend will probably continue if key support is not broken.
Fundamental Outlook
The Pound has a lackluster week ahead, except for Thursday when the Bank of England will release their Inflation Report but will also announce the Official Bank Rate, the rate votes of the MPC members and the Monetary Policy Summary, outlining the reasons behind the votes. There’s no change expected for the rate (currently 0.25%) but this cluster of events is likely to trigger increased volatility. UK representatives will attend the G7 Meetings that start Friday.
WEEKLY ANALYSIS: UPTRENDS LOSE MOMENTUM. US DOLLAR BACK ON TRACK?
EUR/USD
Weekly Analysis: Last week started strong for the bears, who managed to take the pair into 1.0850 support but most of the US Dollar gains were erased Friday on the back of disappointing U.S. data and rumors that the ECB may start to taper its quantitative easing.
Technical Outlook
This week we will probably see another test of 1.1000 zone, as current momentum seems to belong to the bulls. If this resistance area can be surpassed, the next destination will become 1.1100 – 1.1120 but we have a slow economic week ahead and this may generate ranging movement, without major advances to either side. To the south, the first notable zone of support is the confluence between 1.0800 level and the 50 days Exponential Moving Average. A break of this zone may trigger an extended move down.
Fundamental Outlook
The first notable event of the week is the release of the Eurozone Flash version of the Gross Domestic Product, scheduled Tuesday and followed later in the day by the U.S. Building Permits. Wednesday we take a look at Eurozone inflation with the release of the Final version of the Consumer Price Index, which although is the least important of the three versions, can still generate strong movement.
Thursday we take a look at the U.S. Unemployment Claims, showing the number of people who asked for unemployment benefits during the previous week, but because this is a weekly indicator, it tends to have a low-to-medium impact. Friday is yet another slow day, without major economic releases, similar to the rest of the week.
GBP/USD
Price action was choppy last week, with a bearish bias that took the pair into the support at 1.2850. The Bank of England kept the rate unchanged and did not signal a hike in the near future.
Technical Outlook
The move up started in March is overextended and in need of a deeper retracement. If 1.2850 support can be broken early in the week, we expect a quick move into 1.2770 and possibly into the 50 days Exponential Moving Average but it must be noted that an uptrend is in place as long as the pair is trading above 1.2770 and the Moving Average. The first major upper barrier is represented by the level at 1.3050.
Fundamental Outlook
The Pound will be affected by three important releases this week: Tuesday the British Consumer Price Index comes out, showing changes in the price that consumers pay for the goods and services they purchase. The indicator acts as the main inflation gauge and usually has a strong impact on the Pound.
Wednesday’s highlight is the Average Earnings Index, an indicator that shows changes in the price that businesses pay for labor and the last release of the week is the British Retail Sales, scheduled Thursday. Overall, we have a rather slow fundamental week all around but this doesn’t necessarily mean that volatility will be low.
WEEKLY ANALYSIS: WHAT GOES UP MUST COME DOWN. IS THE BULL-RUN CLOSE TO AN END?
EUR/USD
Weekly Analysis: The pair showed massive bullish movement last week, broke several resistance levels and climbed for approximately 280 pips. US Dollar weakness seen across the board was the main catalyst behind the move.
Technical Outlook
The immediate destination seems to be the resistance at 1.1240, where we expect to see a bounce lower, forming a retracement. However, we don’t expect this pullback to go below 1.1120 – 1.1100 and once support has been established, the chances of another push to the north will increase. If 1.1240 is broken, the next resistance is located 100 pips higher, at 1.1340. To the downside 1.1120 is the first support, followed by 1.1000 but currently the pair is in a clear uptrend so we favor the upside.
Fundamental Outlook
The pair has a slow start of the week, with the Eurogroup Meetings being Monday’s only notable event. Action picks up a bit Tuesday with the release of the German IFO Business Climate, a survey derived from a very large sample of about 7,000 businesses and focused on the respondents’ opinions on current business conditions as well as a 6-month outlook. On the US Dollar side we have the U.S. New Home Sales numbers, released later in the day.
Wednesday ECB President Mario Draghi will speak in Madrid at the First Conference on Financial Stability, organized by the Bank of Spain. Later that day the FOMC will release the Meeting Minutes, containing details of their last interest rate vote but also, possible hints about future rate hikes.
Thursday French and German banks will be closed in observance of Ascension Day and the trading week ends Friday with the U.S. Preliminary Gross Domestic Product, which is an economy’s main gauge of performance and an always-important indicator that can strongly affect the currency.
GBP/USD
The pair traded higher last week and climbed into 1.3050 resistance after a bounce off of 1.2850 support. The Pound benefited from positive economic data but also the US Dollar weakened against most of its counterparts and these facts combined generated the push into resistance.
Technical Outlook
The first touch of 1.3050 triggered a fast bounce lower, which seemed to have 1.2850 as target; however, all the Pound losses were erased the next day and now the pair is testing 1.3050 again. A break of this important level would score another victory for the bulls and would open the door for a move into 1.3430. Keep in mind that we are talking about almost 400 pips so even if the target is reached, it probably won’t happen in a week unless surprising events take place. To the downside, 1.2850 is the first support, followed by 1.2770 and the 50 days EMA.
Fundamental Outlook
The Pound will only be affected by two major events this week. The first is the Inflation Report Hearing, scheduled Tuesday, when Bank of England Governor Mark Carney will testify on economic situation and inflation before the Parliament's Treasury Committee. The other event is the release of the British Second Estimate version of the Gross Domestic Product, scheduled Thursday.
WEEKLY ANALYSIS: U.S. NFP DATA TO “MAKE OR BREAK” THE DOLLAR’S RECOVERY STARTED LAST WEEK
EUR/USD
Weekly Analysis: For the entire last week the pair consolidated below 1.1240 resistance and the bull run came to a halt, preparing the stage for a deeper move south. The economic scene didn’t present any market moving events and this contributed to the overall situation.
Technical Outlook
Several Daily candles pierced 1.1240 resistance but failed to close above it, thus showing clear signs of rejection and making us anticipate a move lower, which will have 1.1120 – 1.1100 as first target. Despite the failure at 1.1240, it must be noted that the pair is still in an uptrend a significant low hasn’t formed yet. This means that a potential break of 1.1240 will probably take the pair into the next resistance, located at 1.1340.
Fundamental Outlook
Monday ECB President Mario Draghi will testify about the economy before the Economic and Monetary Affairs Committee. This is potentially a big mover for the Euro and will probably generate increased volatility. U.S. Banks will be closed, in observance of Memorial Day.
Tuesday the German Preliminary Consumer Price Index will be the highlight on the Euro side, while the US Dollar will be affected by the Consumer Confidence, a survey that acts as a leading indicator of consumer spending.
Wednesday we take a look at European inflation with the release of the Flash Estimate version of the Consumer Price Index and Thursday U.S. jobs data is released in the form of the ADP Non-Farm Employment Change, a report that shows changes in the number of employed people, excluding the farming sector and Government.
The week ends Friday with the most important U.S. jobs report: the Non-Farm Payrolls. Similar to the previous indicator, this one shows changes in the total number of employed people, excluding the farming sector but including Government jobs. Usually a number above expectations shows increased economic activity and strengthens the US Dollar.
GBP/USD
The Pound took a hit last week, dropping for more than 250 pips. Brexit concerns, including the approaching of the June 8 election and the ability of British Prime Minister May’s party to win that election, seem to be the main reason behind the drop.
Technical Outlook
After failing to break 1.3050 key resistance, the pair dropped into the 50 days Exponential Moving Average and into the support at 1.2770. The way price behaves here will be very important for medium term direction because we are dealing with a confluence zone (two or more technical elements meet in the same place or close vicinity) and a break would show increased bearish pressure, making 1.2570 – 1.2550 the next destination. To the upside, 1.3050 remains the main resistance but a move into this level would have to be backed by strong fundamentals.
Fundamental Outlook
The Pound has a slow week ahead, which starts with the Spring Bank Holiday on Monday. No high-impact indicators will be released until Thursday when the Manufacturing PMI comes out, followed Friday by the Construction PMI. Both are surveys of purchasing managers from the respective sectors and act as leading indicators of optimism and economic health. Higher numbers usually strengthen the Pound but the impact is not always high if the actual number comes close to the forecast.
