Global Currency Market Forecasts : Outlook for Week Commencing 1st February

February 1, 2016 - Written by Tim Boyer

STORY LINK Global Currency Market Forecasts : Outlook for Week Commencing 1st February

USD Exchange Rates Struggle after Friday's Disappointing Q4 GDP Weighed on Investor Confidence

This week’s session bring another busy data schedule, with tier one releases in several major economies. Our leading analyst takes a look at the potential market-moving statistics penned in for publication over the coming five days…

The weekly data roster is peppered with significant statistics from the United States. Friday’s Q4 Gross Domestic Product figures disappointed to the downside, threatening the Buck’s recent powerful move forward. However, the US tender has a quick opportunity to re-establish itself, with the publication of Personal Consumption Expenditure for December and last month’s ISM Manufacturing survey, both out this afternoon.

The Non-Manufacturing version of the same US survey is out on Wednesday afternoon, but Dollar-watchers will have to wait until the final session of the week for the main event. A strong showing for January’s US jobs market data is forecast to propel the Pound Sterling US Dollar exchange rate lower once again – a drop back into the 1.3000s is expected in such a circumstance. Non-Farm Payrolls are considered one of the strongest indicators of economic health that the Fed use to decide interest rates.

Bank of England 'Super Thursday'to Provoke pound Sterling Exchange Rate Volatility This Week

Meanwhile, investors holding the Pound Sterling (currency : GBP) will be eyeing ‘Super Thursday’, when the Bank of England (BoE) publishes the latest edition of its Quarterly Inflation Report, alongside this month’s monetary policy announcement. The last Inflation Report was particularly dovish and saw Pound Sterling plummet. Recent weeks have seen BoE Governor Mark Carney furiously back-pedal on his promise of last Summer to tighten the UK’s monetary policy ‘around the turn of the year’.

The Head Honcho at the Old Lady of Threadneedle Street has used falling Crude oil prices to dampen market participants’ UK inflation expectations. However, Brent Crude has staged a concerted recovery during the last week, recovering from below the $28 level to trade back above $36 a barrel on Friday. If the BoE takes this on board in its report and ups its UK inflation forecasts, then the Pound could enjoy renewed support in the global currency markets.

RBA Policy Announcement and New Zealand Labour Market Data to Stimulate AUD, NZD Changes

Elsewhere, this week also brings important releases from the Antipodes. Look out for the latest Reserve Bank of Australia rate announcement overnight tonight to provide the Australian Dollar (currency : AUD) with fresh direction, while tomorrow night’s New Zealand jobs figures could provide the Kiwi Dollar (currency : NZD) with some support.

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TAGS: American Dollar Forecasts Australian Dollar Forecasts Dollar Pound Forecasts Forecasts