Sterling broke above 1.51 handle
After it sharply fell and closed last week below 1.51handle, Sterling added over 100 points in the European part of the session, rebounding despite lack of major data releases. The pound has been the best performing of the G10 group of major currencies over the past month, helped by a stream of better economic news that a rise in interest rates could come in sooner than expected.
However, we must keep in mind the fact that elections are scheduled for May and it now seems that no party will generate a clear majority. With this being the case we believe that we cannot expect rate hike before the end of the year. On the other hand, latest NFP figures added fuel to speculations on Fed raising their interest rates in the next few meeting that would bring value to USD.
Sterling is currently being traded slightly above 1.5120 area. Pair is likely to find support around 1.5050 and resistance above 1.5160 level. Later today, there will be no major data releases so we can expect steadier rest of the session.
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