Fed policy and risk aversion enabled GBP/USD bears to hold on. Thanks to a crash in the US bond market, Cable fell to its lowest level since November 21, below 1.3000. The risks of a fall in the currency pair remain unchanged next week, with inflation dropping in the UK and US.
In spite of increasing tensions between the West and Russia over Ukraine, the Cable has held stable this week. In the Ukrainian city of Bucha, Ukraine accused Russia of killing civilians in mass numbers over the weekend. Russian officials have rejected that any crimes against humanity have been committed. The US, European, and British sanctions were later issued against Moscow due to this escalation in tensions.
The last week was slow for the UK data, but we expect next week to be full of impactful events. However, the European markets will enjoy a bank holiday on Friday amid Good Friday.
On Monday, we qill have UK GDP and manufacturing and industrial production data. Moreover, the UK’s jobs report is another big event for the week, on Tuesday. In the US, we have US CPI and PPI data due next week.
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