Slow week previous for the Pound likely to be followed up due to absence of key data releases

After market closures on Monday for Easter observance, the Pound started to rise in Tuesday's session, buoyed by a final manufacturing PMI that surpassed expectations. March witnessed the sector's activity returning to growth for the first time since July 2022, bolstering GBP exchange rates.

Subsequently, the Pound's movements against its counterparts were subdued due to a lack of significant macroeconomic data releases. Additionally, ongoing speculation intensified that the Bank of England might initiate interest rate cuts in June, adding further downward pressure on the Pound.

On Thursday, the Pound experienced weakness after a downward revision to March's finalized service sector PMI. The reading came in at 53.1, indicating a faster slowdown in activity compared to what the preliminary reading had suggested.

On Friday, the absence of significant data led to fluctuating movements in Sterling throughout the session. Moreover, risk-averse trading conditions exacerbated the dampened sentiment towards the currency.

For the Pound, the upcoming week appears to be relatively light in terms of data releases, with Friday's GDP data print being the highlight.

As a result, short-term attention might turn to the British Retail Consortium's upcoming retail sales data. Market expectations anticipate a 1.1% increase in sales for March, potentially providing support to the Pound during Tuesday's session.

On Friday, February's UK GDP data is scheduled for release. Economists are forecasting a contraction of 0.3% on a monthly basis for the UK economy, which could exert significant pressure on the Pound and suggest ongoing economic challenges.

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