The quiet start to the week continues with little major economic releases scheduled for today.
Markets continue to focus on the upcoming UK and French elections. There is a lot of market talk that the upcoming elections may not be positive for GBP. One major bank has said that GBP remains beholden to exchange rates and will likely be on a path of gradual weakness in the upcoming months.
Current poll results are largely in Labours favour; therefore, the market is already positioned for such a result and could be what is putting the holding back the pound strengthening further.
Focus will shift to Wednesday afternoon with the US releasing their New Home Sales report, it has been forecasted to come in at 640k up from last month’s 634k.
Thursday brings the release of US Employment figures, with markets pricing in a small decline to 236k (from 238k). Gross Domestic Product will be announced in cohesion with this, with investors eyeing a major decline to 1.3 percent from last quarters 3.4 percent.
For the UK, attention turns to Friday for Gross Domestic Product, it is widely expected that there will be signs of growth in the UK with markets anticipating a rise to 0.6 percent, up from last quarters -0.3 percent.
With the lack of UK data being released this week we could see the pound fall further from its 22-month highs we saw last week.
On the currency front, the pound could fall further against dollar due to the lack of major releases in the UK.