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Forecast British Pound Sterling Data Highlights for Week Commencing 28th September

September 28, 2015 - Written by John Cameron

The Chinese Yuan (also known as the Chinese Renminbi), remains a little traded currency on the global markets, in spite of China having the second largest economy in the world. Old habits die hard and the former hard-line Communist government in Beijing continues to enforce stringent controls on its local currency.

However, China’s perceived position as a key driver of growth in the global economy, coupled with the emergence of increasing evidence that China’s economic miracle is beginning to vanish, have led FX insiders to place a great deal of significance on Chinese economic statistics during recent times.

Thursday morning’s publication of the latest official PMI survey of China’s economy therefore represents a key data release this week. The latest private sector version of the gauge of activity in this vital sector of China’s economy, published earlier this month, pointed to an increased pace of deceleration. If the government version of the survey backs this up, then expect a renewed shift out of risk from global investors which is forecast to send the Pound Sterling Australian Dollar and Pound Sterling New Zealand Dollar sharply higher.

Elsewhere, Friday’s US Non-Farm Payroll job creation data will be more closely monitored than ever by analysts. Most investors still expect the US Federal Reserve to hike its headline interest rate before the end of the year. However, ultra-low levels of inflation across all developed economies and a continued poor performance for global commodities prices means that such an action from the Fed is a long way from being a foregone conclusion. Expectations are high for Friday’s NFP print, with most analysts forecasting that the official numbers will reveal that 200,000 new positions were generated in the world’s premier economy during September. A print of below this would give the US Federal Reserve a ready-made excuse not to increase its rates until 2016. Such a result would therefore send the Pound Sterling US Dollar exchange rate GBP USD sharply higher.

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