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.
Yesterday’s downbeat GDP data from the UK had a limited influence on Sterling as it continued to nudge higher against its peers. Data released earlier today revealed that nationwide house prices in the UK rose to its highest level since June 2014, despite lower mortgage rates and subdued pace of activity in the nation’s housing market.Across the Atlantic, investors are cautious ahead of the initial reading of GDP data for the first quarter. Market participants will eye the FOMC’s policy statement today to gauge the US Fed’s view of the economy. In the Euro zone, a set of economic releases, including Germany’s consumer price inflation report for April, will attract market attention.
Britain’s preliminary estimate of GDP data has shown that growth declined for the first quarter of 2015, indicating that the nation has lost its growth momentum. Going forward, with just over a week until elections, developments from the UK’s political arena could have a greater bearing on Sterling in upcoming trading sessions.Across the Atlantic, reports on consumer confidence for April and February’s S&P/Case-Shiller home price indices, scheduled later today, will draw markets attention. Focus will shift to tomorrow’s initial estimate of US GDP for the first quarter and the Fed’s interest rate decision.