Pound Sterling Forecast – What may impact your currency exchange this week? (Daniel Wright)

This week is looking fairly busy for those looking to buy or sell foreign currency involving the Pound, so I thought I would provide an overview of what lies ahead. Those looking to buy or sell Euros, Swiss Francs, U.S Dollars, Canadian Dollars or Australian Dollars have a few data releases of note to look out for.

Tonight/Tomorrow

Overnight tonight will be of interest for those looking to buy or sell Australian Dollars in a week which is full of key Australian Data. Later tonight we have the release of the RBA interest rate decision and rate statement, no changes to interest rates are expected but any comments that hint to future rate changes may lead to a volatile Australian Dollar overnight.

Tomorrow is fairly quiet on the data front unless you have an interest in Swiss Francs as we have growth figures released from Switzerland at  06:45am so we have a particularly early start for anyone looking to buy or sell Swiss Francs. Expectations are for a slight improvement and should this be the case we may see a boost for the Swiss Franc before trading lines open tomorrow morning.

Wednesday

Overnight we have more data from Australia in terms of  growth figures where expectations are also for a slight rise in economic growth for Australia. I still feel that the Australian Dollar will mainly be led by comments from the RBA tonight for most of the week ahead.

In the afternoon we have a flurry of data from the U.S, inclusive of services data and the Federal Reserve Beige book, there is a great deal of concentration on the Dollar at present with North Korea also playing a major factor along with economic data.

Later in the day we do have the Bank of Canada interest rate decision where expectations are for interest rates to remain at 0.75% but the rate statement will also be key as we may see a hint towards future plans which will set the scene for how the Canadian Dollar performs for the rest of the day.

Thursday

Possibly the day that could bring the most volatility for Sterling exchange rates, we have Retail Sales figures from Australia overnight but then at 12:45pm and 13:30pm respectively, we have the European Central Bank interest rate decision and press conference. No changes to rates are expected but an alteration or tapering of the ECB Quantitative Easing program will be the matter in focus. Should the ECB move to cut down or ‘taper’ the program then the Euro may strengthen but should they suggest they are holding off for the time being it may weaken or become cheaper to buy.

They hinted last week they may wait another month or two so if this is the case I would not be surprised  to see Euro weakness and a stronger Pound on Thursday but never say never!

Jobless claims in the U.S are also released at 13:30pm which will impact the USD. We saw poor Non-Farm Payroll figures on Friday which hit the Dollar hard and I would not be surprised to see this data follow suit.

Friday

Overnight on Thursday night brings Trade balance along with import and export data too which may once again impact the Australian Dollar too. We do also have U.K data out at 09:30 am and 13:00pm in the form of manufacturing/industrial production and the NIESR growth estimate. Both are of key importance and will show us how the U.K performed in August. The NIESR estimate is usually fairly close to the actual growth figure so can be a market mover, especially if it brings a surprise figure.

The final release of note this week is Canadian unemployment at 13:30pm – We are expecting levels to remain at 6.3% in Canada but anything different to this may lead to a late move for Canadian Dollar exchange rates to end the week.

Should you wish to be made aware of any spikes in the market or should you simply wish to discuss how to ensure you get the very best exchange rate on a pending property purchase or sale, or indeed a business transaction coming up then you are more than welcome to contact me personally.

You can contact me (Daniel Wright) the creator of this site over 7 years ago by emailing me on [email protected] or by calling our trading floor and asking for me on 01494 787 478 and I will be more than happy to speak with you personally.