The British Pound rallied well versus the US Dollar, ending a two-week losing streak. The move comes as a surge in global market confidence, combined with improved UK economic activity in April, helped the risk-sensitive British Pound. Looking ahead, the UK economic calendar is once again rather tranquil, leaving the British Pound vulnerable to market fluctuations.
Last week’s mixed local data provided moderate support to the euro. In fact, the Hamburg Commercial Bank and S&P Global PMIs revealed that, while manufacturing output remained in contraction, the services sector continued to improve. Looking ahead, market investors will closely monitor this week’s Eurozone inflation data.
The US dollar lost some ground during the last week, but it remains on track for robust gains in April after investors priced out most predictions of early Fed rate cuts. The focus is now completely on the Fed meeting set for Wednesday, May 1st. Given recent inflationary pressures in the United States, the central bank is expected to hold rates constant and maybe offer a hawkish outlook.
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