In the first half of April, GBPUSD traded to a new 5 year low (1.4530), with the US dollar bid and GBP weak on election fears. Fast forward a matter of weeks and cable is now trading above 1.5365 and EURUSD has rebounded from its race to parity, to trade over 1.10.
The move is primarily a US dollar story, in the UK the general election is in eight days and the uncertainty over the future government remains. In Europe the fears of a Grexit remain, as the remaining funds in Athens are nearly exhausted.
At 13:30 (London) the latest reading from the Bureau of Economic Analysis for Q1 GDP, with the consensus being that the economy grew at 1%. Then at 19:00 (London) the Federal Reserve will make its pivotal monetary policy announcement. The expectation is that the FOMC will not raise rates today, however traders will digest the accompanying statement for any changes in tone, or shift in rate hike expectations. Fed Chair Janet Yellen isn’t undertaking a press conference after the announcement, it is likely at the time the statement there will be considerable volatility.