GBP / USD
On Wednesday, the dollar index increased by 0.51% and lowered the British pound by 47 points. At 3:00 PM London time today, the balance of retail sales from CBI for April will be published with a forecast of -3 against -8 in March. Despite the official improvement of the indicator, in practice, its predicted value indicates the continuous strong pessimistic sentiments within the wholesale and retail trade sector. This pessimism will be especially clear against the background of US data on durable good orders, with the forecast at 1.6% March increase. However, investors are more occupied with the GDP data for the first quarter scheduled tomorrow. The consensus forecast is 0.25% (1.4% YoY), which naturally can disappoint market participants. Weak GDP data will also automatically reduce investors' expectations on the rate hike at the meeting of the Bank of England on May.
We are expecting the British pound to decline in the range of 1.3800 / 20.
* The presented market analysis is informative and does not constitute a guide to the transaction.
