Since my post on Tuesday the GBP/USD cross has been relatively stable with the currency pair remaining within a 40 pip range over the past two trading days. A lack of economic numbers from either side of the pond has meant this week has been one of the most subdued I have seen in recent times. Could this be the calm before the storm?
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I would expect to see more volatility in the currency markets next week as the start of a new month will see a number of key data releases from the UK and U.S. The Bank of England will give their latest interest rate decision which I am sure will be heavily scrutinised following the MPC's split decision a couple of weeks ago.
Following the UK economies recent performance I still think it is unlikely we will see any movement by the BoE but the pounds value will probably fluctuate in the build up to the announcement as the markets move just as much on rumours as they do facts.
At the end of next week we will get the latest U.S. job numbers and as my regular readers will know usually cause some big swings for the GBP/USD cross. The numbers are impossible to predict but with the U.S. economy performing well in recent weeks, a positive reading could see the dollar make further inroads into the pound.
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