Today sees a number of different data releases that could effect exchange rates. In the UK retail sales are announced at 9:30 with expectations to show a good increase thanks to Christmas sales, however as with all economic data releases any deviation from the expected numbers could cause volatility in the currency markets. Over the course of this week we have seen a number of major retailers most notably Tesco announce poor Christmas sales figures so despite the estimation showing an improvement on last months sales figures there is a chance the estimation wont be hit resulting in Sterling weakness.
In Canada we see Consumer Price Index figures released at midday. This figure will give an indication of Canadian inflation by showing the rise (or fall) in the price of goods and services and as we have seen in the UK high inflation can increase calls for interest rate hikes which can give currency a short term boost but can also be quite harmful long term to an economy if the price of goods increase faster than wages as consumers cannot afford goods and therefore spend less. Meanwhile in the US the housing market will be in focus as existing house sale figures are released at 3pm, a strong figure here can see Dollar strength while a weaker than expected figure could cause dollar weakness.
If you would like to discuss these data releases and the effect they could have on your currency transfer contact one of our currency brokers today who can discuss the market outlook and all the options available to you. Call us on 0800 328 5884 or email firstname.lastname@example.org