Currency Forecast Week Commencing 14th July

It looks set to be a busy week in the currency market with plenty of economic data set for release all of which could have big implications for exchange rates meaning it will be important for any client looking to transfer funds internationally to keep informed of all the latest developments.

Monday – Today is Bastille Day in France meaning the country will be closed, however the rest of the Eurozone remains open and later this morning Eurozone industrial production figures are set to be released while this afternoon European Central Bank (ECB) president Mario Draghi is due to speak and with the recent cut in interest rates and the continued threat of falling inflation any comments from Mr Draghi will be closely watched as they could spark more movement for the EUR, especially if he talks about making further changes to monetary policy in the single currency economy.

Tuesday – The day starts with the latest set of Reserve Bank of Australia (RBA) minutes which will give a good indication as to how the central bank see the performance of the Australian economy and what was discussed at their recent interest rate meeting. Any unexpected comments from these minutes could have a big knock on effect to the Australian Dollar and so for any clients who are looking to buy or sell AUD it will be a key announcement to look out for. Later on Tuesday June’s inflation figures for the UK are set to be released and with inflation falling recently they will be another set of vitally important economic data and should we see inflation fall from the current levels we could see some Sterling weakness. Following this announcement Governor of the Bank of England Mark Carney is due to speak which, as per Draghi’s speach today could be a market mover especially if there has been a surprise in the inflation figures. The day ends with a raft of data for the States including export figures, a speach from Head of the Fed, Janet Yellen and the key retail sales figures all of which could important for USD exchange rates.

Wednesday – On Wednesday the important unemployment figures are announced for the UK which have been one of the positive economic indicators for the UK showing a steady fall in the number of people out of work and a further drop could provide more positive movement for the Pound. Meanwhile in the US the American mortgage application figures are announced while across the boarder in Canada they announce their latest interest rate decision where rates are expected to be kept on hold at 1% and this will be followed by a statement from the Bank of Canada which will give a good insight into how they see the performance of their economy and could lead to movement on the Canadian Dollar.

Thursday – The key economic data released on Thursday is the latest inflation data for the Eurozone and with inflation one of the main drivers for the recent cut in interest rates by the ECB it will be closely watched data set as any weakness could spark more talk about further action from the ECB and therefore have big Euro movement. Thursday also sees the latest jobless figures from the US which is considered a very important data set for the States and can cause big swings in the Dollar exchange rates so will be one to watch for clients with a USD currency transfer requirement.

Friday – The week ends on a quieter day with Canadian inflation figures and US consumer sentiment figures.

So, with plenty of economic data due for release this week it is more important than ever to keep in close contact with your currency broker here at Foreign Currency Direct plc so that we can keep you informed of all the latest currency movement while discussing the options available to you. You can call straight through to our trading floor for free on 0800 328 5884 or if calling from abroad call us on 0044 1494 725353 alternatively you can email me directly on