Sterling was a touch softer on Tuesday, coming under difficult pressure but showing impressive resilience to maintain most of its previous gains against the Euro and Dollar. The Bank of England “slowing down of its bond-buying scheme last week kicked off sterling's gains”. Then another boost came from the Scottish elections, “where the Scottish National Party fell short of an absolute majority, slowing their strive for an independence referendum”. Lastly, the reopening of Britain comes ever closer, with the next phase of restrictions to be lifted on Monday. This alone will likely induce some vigour into the Pound. With this said, “Investors are holding their breath ahead of Wednesday's US Consumer Price Index statistics for April. The wait for the data may keep the lid on cable, despite sterling's impressive list of reasons to rise.”
GBPUSD start Tuesday at an impressive 1.4128, and despite pressures from the Greenback, was able to close at 1.4114. “Some resistance is at the daily high of 1.4145, followed by the May peak of 1.4160. Support is at 1.41, the round number, followed by 1.4070 and 1.4050.”
GBPEUR saw little activity on Tuesday as the pair holds comfortably above 1.16. The pair started the session at 1.1636 and closed the day off at 1.1630.
EURUSD also saw little action in the session. Still above the 1.21 handle, the pair opened at 1.2142 and closed at 1.2161
On the data front, at the 07:00 the UK will be publishing their latest GDP figures for March and Q1. Then at 10:00 BoE Governor Andrew Bailey will be speaking. Finally, the all-important US Core Inflation figure is due at 13:30, with a forecast of 2.3%. US Inflation Rate YoY, released at the same time, is expected at 3.6%, with a previous of 2.6%.