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The Sterling moved in a different manner compared to the previous week with a strong negative beginning. The pair started to rose from Tuesday on upbeat UK construction activity data, which advanced to 55.9 last month from a reading of 54.2 in April. Economists had expected the index to improve to 55.0 in May. Moreover, the Pound remained higher against the Dollar on Thursday after the Bank of England left interest rates on hold at their current record lows. The BoE was holding the benchmark interest rate at 0.50%, in a widely expected move. Meanwhile, the rate has been held at that level since March 2009.
This week's participants of Dukascopy quiz continue to be bearish on pair's perspectives, as now 60% of all votes are long, while the average prediction is located on the weekly pivot point at 1.526. For example, Jignesh supports this idea, suggesting that "The GBP should continue selling, as the USD can show continued strength from last week's strong NFP number. 1.4850 offers decent previous support and a realistic target for then end of the week." Meanwhile, Nuki1981 thinks strongly opposite, assuming that "Depending on the report some important data from the UK this week, the pound will be at a turning point, if it falls below 1.5190, and will rise to 1.5400 as well."
Opposite to the single European currency area, the UK is going to report the trade balance on Tuesday. The next day, the data on manufacturing production will be released. From the American side, market participants could pay additional attention to the US reports on initial jobless claims and retail sales on Thursday, and data on producer price inflation and consumer sentiment on Friday.
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