This weeks starts quietly with very little economic data of note, however it is likely that for Sterling, Friday’s stronger than expected retail sales figures could still bring positivity and ensure the current trend for the Pound holds true. However, the main economic data of note is inflation figures for New Zealand with their consumer price index announced late tonight. On Tuesday the day starts with the Swiss monthly statistical bulletin which will give an insight into the Swiss economy and therefore the strength of the Swiss Franc (CHF). Also released on Tuesday is the ZEW survey for Europe, Canadian manufacturing figures and Australian consumer confidence.
On Wednesday the World Economic Forum in Davos begins which is often interesting to monitor as it is a meeting of all the worlds major authorities meet and discuss economic issues amongst other things. Probably the main economic data release for Sterling is out on Wednesday with the Bank of England minutes and also unemployment figures, while Canada also announce their latest interest rate decision. As has recently been discussed unemployment is a major factor for the Bank of England’s decision as to when next increase interest rates and should we see the unemployment rate fall even closer to the targetted 7% level we could see major Sterling strength, also any comments in the BoE minutes about reducing Quantitative Easing or increasing interest rates could result in Sterling strength so Wednesday could be an absolutely crucial day for anyone needing to make an international money transfer.
On Thursday we have manufacturing figures for Europe, Retail Sales for Canada and jobless figures for America, all three of these data sets will be crucial for their respective currencies. Finally on Friday we have UK mortgage approvals and inflation figures for Canada.
It is clear there is a real plethora of economic data this week which is likely to effect a whole host of currencies and could lead to volatile currency exchange rates. So, if you need to transfer funds internationally make sure you speak with one of our experienced currency brokers here at Foreign Currency Direct plc who will be happy to discuss your currency requirements, the market outlook and the different options available to you. You can call straight through to us for free on 0800 328 5884 or if calling from abroad on 0044 1494 725353 alternatively email me directly on email@example.com