Investors will wait for PMI construction, mortgage approvals, and M4 money supply from the UK as of 08:30 GMT. The data may have impact on the pound’s movements versus the dollar after the drop in PMI manufacturing for April to the lowest level in seven months, as shown by data released yesterday. The manufacturing gauge fell to 54.6 from 57.1 in March which may raise concern about the strength of recovery in the second quarter after the 0.5% rebound in growth in the first quarter.
On the other hand, at 12:15 GMT then 14:00 GMT, the U.S economy will release ADP employment change where it is estimated to decrease to 200,000 in April from the previous 201,000, while ISM non-manufacturing is predicted to soar to 58.0 in April from 57.3.
While the Fed had kept monetary policy loose, the BoE is predicted to leave monetary policy on hold on Thursday, yet it is expected to tighten monetary policy in June. However, yesterday the dollar rebounded from 17-month low against the cable with fears of al-Qaeda revenge attack where investors resorted to the green currency as a safe harbor. Thus, if worries continued to persist in markets, the dollar may take advantage and push the pair down.
Written by ForexMansion.com