The Pound seems to be struggling to improve on the recent strong performance as the market desires to learn of better news. Whilst the good news is not exactly forthcoming there is a very high expectation the data will continue to be positive for the UK and the Pound which will lead to the Bank of England considering an interest rate hike in May.
The problem with the news coming out this month is that it reflects the news from March which is when the snow caused widespread disruption across the UK, leading to lower economic figures. Whilst the Bank of England will take this with a pinch of salt, they cannot ignore the reflection of a slightly weaker economy and this might influence their decision making.
Other concerns for the Pound centre on the Brexit and what might be likely to happen in the future with the Irish border and also the final trade arrangements for the UK and the EU. This is unlikely to be finalised this month and therefore Sterling might drift down owing to any negative headlines surrounding this situation. What could be more likely in the future is any evidence of conflict between the UK and EU over the Irish border and trade talks leading to a breakdown in the current confidence and Sterling losing ground.
The week ahead is not too busy on the data front so it might be a good week to organise yourself ahead of any future transfers. We know from experience that it is usually when everything seems to be going swimmingly in one direction that we see some sudden uncertainty that suddenly changes the picture. Nothing can ever be wholly predicted on exchange rates but Sterling could well be trading at the top of the latest ranges, holding on for any major improvements could prove expensive.