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The Pound/Dollar currency cross traded in highly-volatile and mixed environment during the March 28—April 1 working week; however, both Monday's opening level and Friday's closing level almost perfectly fitted each other. On Monday, the currency pair traded sideways due to the Brussels attack as well as increased odds that Britain will leave the European Union. However, already on Tuesday the British currency started to gain in value adding 370 pips reaching 9-days highs as the US dollar was unable to find any support after Yellen's dovish speech. Moreover, the next day, when the inflation data was release, the Pound prolonged its gains, as the third and final official estimate of GDP came at 0.6% in the final quarter of last year versus the prior estimate of 0.5%. The annual rate of GDP growth, in turn, was also higher at 2.1%, compared to the previous estimate of 1.9%. Nevertheless, during the last day of the observed period, the pair was trading significantly lower, due to an upbeat payrolls report announcement. The Sterling diminished 200 pips as according to the Department of Labor, average hourly earnings rose by 2.3% annually, beating the 2.2% forecast, while the gauge increased 0.3% month-to-month. The pair finished the trading week on the weekly pivot point at 1.419.
This week traders' expectations worsened even more, with 60% of Dukascopy Community members predicting the pair to lose. Alongside, the average forecast for the end of the week is placed around the 1.413 level. On Wednesday, the market will be waiting for FOMC minutes, while the next day, continuing jobless claims release and Fed's Yellen speech. From the UK's side, the manufacturing production and industrial production is going to be announced on Friday.
© Dukascopy Bank SA