The Pound faces an interesting week this week with various data releases due out for the U.K, Europe, Switzerland, Canada and the United States.
Australia starts the ball rolling on Wednesday with GDP figures coming out at 02:30am – Expectations are for the economy still to be growing however for the pace to have dropped a little, potential for AUD weakness overnight is there should this be the case.
Some Inflation Data out at 08:15am for Switzerland following by a raft of inflationary data floating in from Europe, European Retail sales and the European unemployment rate at 10:00am so Euro buyers and sellers really do need to be on the ball during the morning session, if you have an upcoming Euro transfer yet don’t have time to follow a market that moves every two seconds then let me do the donkey work for you. Contact us today on 0800 328 5884 if you would like assistance.
Later in the day we have the Bank of Canada Interest Rate Decision at 14:00pm – No change to interest rates is expected however any comments on economic change may lead to a volatile afternoon for the Canadian Dollar.
First things first we have European GDP figures at 10:00am to kick start the day with a bang followed by the U.K interest rate decision due out at 12:00pm – Again no change in rates is expected but mention of QE and any other economic tactics could lead to a shaky afternoon for the Pound.
Shortly after this we have the European Central Bank Interest Rate Decision and a potential interest rate cut is on the cards for this one. Should we see a cut the Euro may slightly weaken however when a release is already forecast by analysts the market tends to move in advance of this so should we not see a cut the Euro may strengthen further with force as the market corrects itself. The head of the European Central Bank Mario Draghi also holds a press conference at 13:30pm and this can give indication on future policy and lead to a very jumpy hour or so for Euro Exchange Rates.
Thursday afternoon will see the release of some employment data for the States so the Dollar may join the volatility party if we do see any change from expectations.
To finish the week off we have early morning Swiss Unemployment figures due out at 06:45am and then some Industrial and Manufacturing data out for the U.K at 09:30am which can lead to large swings for the Pound depending on how it comes out, further GDP data for the Euro zone is due at 11:00 and then finally Non Farm Payroll data at 13:30pm we have a data release important for those with a Dollar interest and indeed interest in the ‘riskier’ currencies such as the AUD, NZD and ZAR. Non-Farm Payroll data is essentially the number of people in Non-agricultural employment over in the States and is a key indication as to how their economy is performing.
This release can cause quite a lot of volatility because predictions are made in advance and these can be wildly out. The market moves on rumours and predictions as well as fact, and should the figure come out quite a way from initial predictions the market does correct itself rather swiftly.The reason this effects currencies such as the Austrralian Dollar, New Zealand Dollar and South African Rand and pretty much most majors is because as I am sure you can imagine it will affect attitude to risk and will lead to rapid movements of large amounts of money globally in what generally presents an interesting week to say the least without any surprises arising during the course of it.
If you have an upcoming transfer to carry out and want to get the best exchange rates along with great customer service and knowledge of the markets then email me directly firstname.lastname@example.org I welcome all enquiries for bank to bank transfers however i’m afraid I cannot help with cash transactions or speculation.