As expected, with most major banks out on holiday, Friday turned out to be a very slow day in terms of price action. Cable exhibited little volatility as it paced back and forth in a 50-pip range. The currency pair found resistance at 1.5220 and support at 1.5180.
U.K. banks will remain closed today in observance of Easter, which means we could see Cable move horizontally once again. It’s also important to note that the economic data cupboard is also empty today. Looking further ahead into the week, however, we’ve got a few tier 1 events scheduled to happen.
Tomorrow, at 8:30 am GMT, the U.K. Manufacturing PMI will be published. It’s expected to print a reading of 48.9, slightly higher than last month’s reading of 47.9. Then on Wednesday, the Construction PMI will be released. For that survey, the forecast is a reading of 47.7, which is also an increase from the prior month's reading of 46.8.
On Thursday, the Services PMI and the BOE’s interest rate decision are scheduled. For the Services PMI, market participants are anticipating a reading of 51.4, up from the previous month’s 51.8. For the BOE rate decision, they widely believe that the central bank will hold rates at 0.50% and keep the asset purchase facility at 375 billion GBP.
Since risk sentiment has been the driving force behind price action in the last few days, better-than-expected results on the reports I mentioned will probably lead to bullish rallies on Cable.