GBP / USD
During the turbulent events in Spain and Italy on Friday, the dollar index increased by 0.52% which dragged the British pound down to 84 points. In the last two days, gold and oil strongly fall which also affected the dollar strengthening. On Friday, the the second assessment of UK GDP for the first quarter remained unchanged at 0.1%. Today is a holiday in England.
All throughout the week, there will be no important economic releases from the Great Britain, aside from the Friday Manufacturing PMI for May that is expected to decrease to 53.5 from 53.9. While the US expects good data on income and expenditure of consumers on Thursday and Friday employment data . The main focus and interest of the markets are currently focused on Italy and Spain. The main event In Italy will be the formation of the government under the threat of coalition collapse and re-elections, and in Spain is the resignation of the Prime Minister with the threat of re-elections.
We are expecting the pound sterling in the range of 1.3225 / 45.
* The presented market analysis is informative and does not constitute a guide to the transaction.