GBP/USD has been under pressure after a rate hike talk from Treasury Secretary Yellen. Sterling awaits the Bank of England and Scotland elections on Thursday while US figures are set to rock the dollar on Wednesday.
The dollar has reasons to rock and roll
“Another independence referendum in Scotland? The question is high on the agenda as opinion polls show secessionist parties are on the verge of clinching a majority in Thursday's elections. That could cause jitters for the pound, with traders also eyeing regional and local polls across England.”
“The pound's lack of willingness to move can also be attributed to the BoE’s ‘Super Thursday’ rate decision. Will Governor Andrew Bailey signal that a reduction in the BOE's bond-buying scheme? New forecasts will likely point to stronger growth as Britain emerges from the COVID-19 crisis, but much of that might already be in the price.”
“ADP's employment figures for the private sector are set to show a pick-up in private-sector hiring in April. Markets are set to respond despite the weaker correlation between the payroll firm's statistics and official ones.”
“The ISM Services Purchasing Managers' Index is forecast to remain on high ground, pointing to a boom in America's largest sector. However, after the Manufacturing PMI dropped a drop cannot be ruled out. Low expectations could turn into a positive surprise and boost the dollar, but that is uncertain. There is higher certainty about an uptick in volatility.”
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