The dollar made significant gains against the pound yesterday as falling commodity prices helped spur dollar acquisition. Analyst predict the bullish trend to continue. However, long-term things remain bleak for the Dollar as experts expect another indicator to come out this week prediciting a U.S. recession.
Major news out of London is expected to come out at 5:30am EST. The most important report we will be watching is the Month over Month Retails Sales data. Expectations have been that a further rate cut is in the works however concerns over inflation convinced the BoE to keep rates unchanged at 5.25 in March. The next rate decision will come on April 10th and weak retail sales could lead a rate reduction at that meeting. We will take special caution within 15 minutes of the news announcement.