Currency News Weekly Pound Sterling GBP EUR USD Data Highlights for Week Commencing 17th August

August 17, 2015 - Written by Ben Hughes

STORY LINK Currency News Weekly Pound Sterling GBP EUR USD Data Highlights for Week Commencing 17th August

Conversion Rate Outlook Now: FOMC Minutes, US Inflation Data to Impact Pound Sterling to US Dollar Movement

Wednesday is forecast by many analysts to be the key day for data releases his week, with two major publications from the world’s premier economy penned in for release. The early part of the North American equities session brings the publication of last month’s key US inflation statistics and analysts predict that they will prove to be US Dollar positive. June’s counterpart American Consumer Price Index inflation number showed a slight year-on-year increase of 0.1% - the latest edition of the closely-watched numbers is expected to print at double the level. Anything less that the anticipated annualised 0.2% will therefore hit the Greenback hard, but conversely a print of 0.2% or above will stoke investors’ expectations that the world’s leading economic superpower is leaving the prospect of a prolonged period of deflation behind.

September Rate Hike Hints Forecast to Drive GBP to USD Exchange Rate Lower

Dollar-watchers will learn more about the short-to-medium term prospects of the Buck a little later the same day when the minutes of this month’s US Federal Reserve monetary policy meeting are published. We already know that America’s policymen opted to maintain interest rates at their current record low at their August get-together; the key element of these memos will therefore be the language used. Cable has held steady in the 1.5600s for much of the past seven days, but if the minutes contain any pre-announcement from the Fed of a September interest rate would be likely to send the Pound Sterling US Dollar exchange rate plunging towards the 1.5000 threshold.

UK Inflation Data set to Impact Pound Sterling Conversion Rate Movement

Elsewhere, tomorrow’s session sees the publication of the UK version of these all-important Consumer Price Index inflation numbers. The most recent edition of these statistics revealed that the cost of a basket of goods in June of this year had held steady at exactly the same level as it was in June 2014. Investors holding Sterling-denominated assets will be desperately hoping that the July numbers from the Office of National Statistics will point to a return to price inflation for the domestic economy, no matter what magnitude this increase proves to be. FX experts forecast that another showing of zero per cent or worse will cause the Pound Sterling to underperform the other sixteen most actively traded global tenders.

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