The pound consolidated slightly against the euro and the dollar before the release of UK factory orders gauge. The CBI Industrial Trends survey for April is published today at 11:00, with the expectations for the headline figure to consolidate to 2, from 5 in March. Monetary Policy Committee (MPC) member Andrew Sentence is also scheduled to give speech today in Manchester. Sterling gained across the board on Thursday as data showed that retail sales in March unexpectedly rose and the UK budget deficit was below the economist estimates. Looking to the week ahead, first quarter Gross Domestic Product (GDP) headlines the economic calendar scheduled for Wednesday, with the expectations for the economy to expand by 0.5%, after contracting by –0.5% in the previous quarter. Expect for the pound to remain supported against the major rivals should we see economic data surprise on the upside.
The dollar dropped across the board during the overnight trade on expectations that the US Federal Reserve will remain committed to its loose fiscal policy for the foreseeable future. Market participants expect for the Fed to leave its target rate unchanged at 0.25% at its April two day meeting starting today. It is also widely expected for the US central bank to complete its 600 billion dollars asset purchase plan. In addition, S&P/Case-Shiller index of home prices release is due out today, with the expectations for the February figure to have dropped by –3.3%.
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