Just released data has shown that Britain’s service sector activity expanded at the fastest pace in eight months for April. The survey is likely to ease fears that growth in the economy slowed down, ahead of the elections. Sterling is expected to remain range bound as focus among investors shifts towards tomorrow’s general election.In the Euro zone, the final print of Markit services PMI came in higher than initial estimates, indicating that domestic demand is supporting recovery in the region. Across the Atlantic, the ADP employment change data scheduled later today will likely attract market attention.
The just released economic data indicated that Britain’s construction PMI declined more than market expectations for April. Moving ahead, the buildup to UK’s general elections is expected to have an influence on the Pound in the upcoming trading sessions. Also, tomorrow’s services PMI and trade data due later this week will attract market attention.Across the Atlantic, market participants will keep a tab on the nation’s trade data and ISM non-manufacturing PMI reading to gauge the health of the economy. In the Euro zone, Spanish unemployment figures dropped to its record low for April, possibly suggesting that the nation is in the middle of a strong recovery.
The GfK consumer confidence survey indicated that consumer morale in the UK remained at a multi-year high. However, a survey by CBI revealed that growth in retail sales volume surprised on the downside for April. With no major domestic indicators today, the Pound is likely to be influenced by global macro news.The initial estimate of the US GDP data showed that growth slowed for the first quarter. The FOMC, in its latest monetary policy statement, indicated that US Fed officials were confident of achieving its desired inflation target over the medium term and indicated that the recent slowdown appears transitory. In the Euro zone, inflation and unemployment data, scheduled later today, will attract market attention.