© Dukascopy Bank SA
The Pound dropped slightly against the Dollar on Monday, as the Greenback regained some ground, after declining sharply last week, on the back of fresh uncertainty over the timing of a US rate hike. Moreover, on the next day, the Sterling slipped lower again, as consumer price inflation in the UK slowed to the lowest level since records began in February. According to the Office for National Statistics, the rate of consumer price inflation decelerated to 0.0% in the preceding month, from 0.3% in January, compared to expectations for a 0.1% reading. However, the pair rose on Wednesday, after upbeat UK mortgage approvals data, although the Greenback remained mildly supported by hopes for a near-term US rate hike. Moreover, the Pound managed to reach a one-week high on the next day, affected by upbeat UK retail sales data and disappointing US economic reports. Meanwhile, the volume of UK retail sales rose 0.7% in February, posting the fifth consecutive monthly increase, as lower oil prices boosted consumer purchasing power. However, the Sterling lost the previous day's gains and plunged to one-week' lows, since markets eyed on an upcoming report on US fourth quarter growth. Nevertheless, the sentiment on the Dollar was hit, after data showed the US economy expanded by 2.2% in the fourth quarter, as previously estimated, despite expectations for an upward revision.
In course of this working week, the votes of Dukascopy Community members are bearish, as almost 61% predict pair to decline. As for the economic news, the UK is to release survey data on manufacturing activity on Wednesday, while on the next day, the survey data on construction activity will be published. Meanwhile, the US is to announce data on the trade balance, initial jobless claims and factory orders on Thursday.
© Dukascopy Bank SA