Good morning,

A quiet data day yesterday saw markets relatively flat across the board for GBP crosses. GBP/USD opened today at 1.3890 and GBP/EUR opening at 1.1570. Going into today we are again looking at a relatively light day for data, with the highlights being on US ADP employment data out early afternoon.

Market anticipation builds in the run up to tomorrow’s Scottish Parliament election, with GBP coming under recent pressure as a result. A majority win for pro-independence parties could result in an increased chance for a second referendum, creating uncertainty for the strength of GBP and reducing risk appetite for the pound.

Tomorrow will see up to 48 million voters attend the polls and elect over 5,000 seats spanning 142 councils in the UK alone. There will also be elections to choose 12 mayors in different regions and cities across England. Eyes will be on the new filled seats and their stance on current local pandemic response. Due to Covid safety measures at counting venues, it is expected the count could span into the weekend before any results are released.

The BoE will also meet on Thursday to deliver their monthly monetary policy decision and quarterly monetary policy report. The BoE will usually opt for the quarterly reports to release any notable shifts in stance on monetary policy. The markets will look to the BoE’s sentiment to help set the tone for GBP trading throughout May.

Have a great day.

James Camp, Relationship Manager.

Whilst every effort is made to ensure the information published here is accurate, you should confirm the latest exchange rates with WorldFirst prior to making a decision. The information published is general in nature only and does not consider your personal objectives, financial situation or particular needs. Full disclaimer available here.


References

https://www.bbc.co.uk/news/uk-politics-56286643

https://www.poundsterlinglive.com/gbp-live-today/15358-boe-taper-and-pound-to-euro-and-dollar-outlook-for-may

https://www.poundsterlinglive.com/gbp-live-today/15345-scottish-election-pound-to-euro-and-dollar-analysishttps://www.fxstreet.com/economic-calendar