Economic Data That Could Impact GBP, EUR and the USD

The week starts quietly with very little economic data of note due for release with production figures in the Eurozone the most noteworthy data set. Tomorrow however, is a different story with the latest Australian interest rate decisions where rates are expected to be kept on hold at 2.5% but with the accompanying statement likely to make interesting reading it could lead to some volatility for GBP AUD exchange rates. Also announced tomorrow we have Eurozone retail sales and services PMI figures both of which will provide useful information on the current state of the single currency economy. Tuesday ends with a raft of US economic data and the latets New Zealand employment figures which will ensure that Tuesday is a busy trading session.

As we move into Wednesday we have the latest UK house price data and industrial and manufacturing production figures which will provide a good insight into how one of the key parts of the UK’s economy is performing. We also have mortgage application figures for the US which could lead to market movement while the day finishes with the latest Gross Domestic Product (GDP) estimate from the National Institute for Economic and Social Research which is a very useful indicator as to how the UK economy is performing and will help give us an idea as to how the official numbers from the Office for National Statistics will come out later in the month.

Thursday we have the latest Bank of England interest rate decision and despite the recent continuation of positive economic data there is an outside chance of an interest rate hike but it is a very small possibility at the moment, however the European Central Bank (ECB) will also make their latest interest rate announcement on the same day and there is a bigger possibility that we could witness further action from them. Inflation has continued to fall despite the recent interest rate cut from the ECB and previous comments from Mario Draghi, head of the ECB, stated they will act again to try and prevent deflation should they feel it is necessary. So, Thursday could be one of the biggest and most important days in the currency markets this month let alone this week.

The week ends a lot quieter with the main data of note being the trade balance figures which the Government will be hoping shows a positive movement.

So, with a raft of important economic data it will be very important to stay in close contact with one of our senior currency brokers here at Foreign Currency Direct plc as they will be able to discsuss your currency requirements, the market outlook and 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 trh@currencies.co.uk