Coronavirus headlines, PMIs for March and the Bank of England’s meeting are set to drive the pound next week, according to FXStreet’s Yohay Elam.
Key quotes
“Coronavirus developments remain left, right, and center. The numbers of cases and deaths are expected to rise, as a long period of free movement is set to take its toll. Prime Minister Boris Johnson is set to announce more restrictions.”
“UK figures have been for the pre-crisis period, but the upcoming week’s preliminary Purchasing Managers’ Indexes for March. They are likely to plunge, yet the scale is unknown. A drop below 40 cannot be ruled out, and it would be harmful for the pound.”
“Consumer Price Index figures for February are somewhat stale but may provide insights on inflation before the crisis. Headline CPI is set to decelerate from 1.8% to 1.7%.”
“Last but not least, the BoE convenes for the third time this month. The ‘Old Lady’ is unlikely to cut rates again but may announce new lending schemes. Additional money printing may support the currency once again.”
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