1Finance

GBP/USD dropped sharply last week, dropping 230 points. The pair closed at 1.2781, its lowest weekly close in four weeks. This week’s key events are Manufacturing and Construction PMIs.

1. BRC Shop Price Index: Tuesday, 23:01. This consumer inflation report continues to post declines, but the rate of decline has been lower over the past three readings. In April, the index came in at -0.5%. Will we see a reading in positive territory in May?
2. GfK Consumer Confidence: Tuesday, 23:01. The British consumer remains pessimistic about the economy according to this indicator, which continues to record readings below zero. The estimate for May stands at -8 points.
3. Net Lending to Individuals: Wednesday, 8:30. Borrowing levels are closely watched, as they are linked to consumer spending levels. The indicator dipped to GBP 4.7 billion in March, but this beat the estimate of GBP 4.5 billion. The downward trend is expected to continue, with an estimate of GBP 4.5 billion.
4. Nationwide HPI: Thursday, 6:00. This housing price index is a useful gauge of the level of activity in the housing sector. The indicator has recorded two consecutive declines, missing expectations on both occasions. The markets are expecting better news in May, with an estimate of 0.2%.
5. Manufacturing PMI: Thursday, 8:30. The index continues to point to expansion in the manufacturing sector, and the March reading of 57.3 beat expectations. The forecast for April stands at 56.5 points.
6. 10-y Bond Auction: Thursday, Tentative. The yield on 10-year bonds dropped to 1.13%, its lowest since October 2016. Will we see a higher yield in the May release?
7. Construction PMI: Friday, 8:30. The PMI has been fairly steady, pointing to modest expansion in the construction sector. The March reading of 53.1 beat the estimate of 52.1 points. The markets are expecting a slight dip in April, with an estimate of 52.7 points.

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