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Despite the majority of bullish expectations, the Cable developed in a rather volatile environment during the previous trading week, but temporary upward movements were sometimes changed by negative tendencies. The pair started the last week at 1.5728 mark. However, on Tuesday, the Cable declined to the session lows against the Dollar after data showed that the UK entered into negative inflation last month for the first time since 1960. UK consumer prices dropped 0.1% on an annual basis in April, with core inflation at 0.8%, the lowest level in 14 years. Therefore, the Bank of England is under little pressure to raise the bank rate from the current record low of 0.5%. The next day, the Sterling rose a little bit, boosted by a slightly more hawkish tone in the Bank of England's May meeting minutes. The minutes showed that the Monetary Policy Committee was unanimous in voting to keep rates on hold this month at 0.5%. However, at the end of the week, the Cable fell to the week's lows, after data showed that UK public sector net borrowing rose less than expected in the preceding month. According to the UK Office for National Statistics, the public sector net borrowing increased by 6.04 billion pounds in April, compared to expectations for a rise of 7.80 billion pounds.
During October 13-17 time period, Dukascopy Community members forecast the currency pair to lose value, as 60% of all votes are bearish for the current trading week. Market participants can pay attention to the release of the UK GDP growth rate in the first quarter and total business investments on Thursday. Among American news, durable goods orders data is expected to be announced on Tuesday. Moreover, on Friday, there will be a release of the second estimate of US GDP.
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