After a quiet week last week for both UK economic data releases and in the movement of sterling, we are in for a much busier week this week when it comes to UK economic data releases. I suspect we will also see some larger movements for sterling.
Today we have the release of the Purchasing Managers Index for the Service sector for March. A slight improvement is forecast; any variation will be disruptive as this is a key sector for the UK economy. Later in the week we have the latest Bank of England meeting, no changes in policy are expected, and on Friday a raft of output figures for February for construction, manufacturing and industry are released. In the background we have the General Election entering the last month before the vote – uncertainty in the outcome is not going to be supportive of sterling strength.