Today, the UK lacks fundamentals which suggest that the pair’s movement will be determined by US data. As of 12:30 GMT, the US will release important data including personal spending and income for March; Chicago purchasing manager for March are due at 13:45 GMT; and University of Michigan confidence for April will be out at 13:55 GMT.
On Thursday, the pound continued its advance against the dollar to 17-month high, taking the pair higher, as the pound was still affected by the upbeat growth report released on Wednesday.
Meanwhile, investors expect the BoE to raise interest rate before the Fed after the Bernanke’s announcement on Wednesday, following the rate decision, as he vowed to keep interest rate low and continue the bond-purchase program which expires in June, to reinforce growth; the thing that increased speculations that the Fed will not tighten monetary policy any soon while the BoE is predicted to raise borrowing cost this quarter, especially after the 0.5% expansion recorded in the first quarter. Thus, the outlook for the pair is going to be to the upside.
Written by ForexMansion.com