As the fresh trading week gets underway, all eyes will remain on the pound, following its 2-week sell-off. Sterling has lost almost 8 cents against the US dollar and 3 against the euro in what’s been its worst run since 2020.
The week ahead will see several UK economic data releases which could have an impact on the pound. The most important of these reports will be the 2022 Q1 GDP print (gross domestic product). Estimates are for a reading of 1% down from 1.3% in Q4 2021. Any number deviating from this forecast could see a material impact on the value of sterling.
Elsewhere, US CPI will feature. The reading will represent April prices and is expected to print at 8.1% vs the March reading of 8.5%. The greenback will likely see an impact if the number prints either higher or lower.
Have a good week.
Written by Viv Savani. 8:24am, May 9th 2022
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