Global Pound Sterling (GBP) FX Economic Data Schedule ?Week Commencing 21st March

March 21, 2016 - Written by John Cameron

STORY LINK Global Pound Sterling (GBP) FX Economic Data Schedule ?Week Commencing 21st March

The Pound has crumbled against its opponents for most of the day today, thanks to an unexpected and highly damaging report from the Confederation of British Industry (CBI) that indicates that the UK could be economically scuppered in the event of a 'Brexit'.

GBP Exchange Rate: UK Consumer Prices Forecast to Provoke Volatility

After a packed roster of tier one data releases last week, investors will be forced to get by on meagre rations this week. Our leading fundamental analyst takes a closer look at the key statistics due for publication this week below…

The stand-out highlight, as far as investors holding the Pound Sterling (currency : GBP) are concerned, comes tomorrow morning in the shape of February’s UK Consumer Price Index data. Given that the CPI remains the British government’s benchmark inflation measure, it’s a number that is always closely watched by FX insiders and this month’s edition is no exception.

January’s UK CPI numbers showed a marked increase from the previous month, leading some analysts to suggest that the domestic economy is on the verge of convincingly pulling away from deflation. Such optimists will be looking for tomorrow’s headline year-on-year figure to show another increase on last month’s 0.3% to back up their theory.

However, given the sharp downward movement in global oil prices during the first two months of 2016, it would seem highly likely that they will be disappointed and that the Office of National Statistics data will suggest that Britain has once again crept back towards deflation.

This outcome is forecast to weigh down the Pound against the other sixteen most actively traded global currencies, with analysts predicting a renewed fall into the 1.2600s for the Pound Sterling euro exchange rate in such a situation. However, any losses for Sterling in such a circumstance may be mitigated by an increase in the Core version of the Consumer Price Index which strips out the effect of changes in energy costs from the overall alteration in prices.

Durable Goods Orders Predicted to Cause USD Movement This Week

Elsewhere, the United States provides the other data highlight of the week, with the provisional version of February’s Durable Goods Orders figure penned in for publication on Thursday lunchtime.

A strong showing to help the US Dollar (currency : USD) claw back some of the losses it incurred against Sterling late last week.

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TAGS: American Dollar Forecasts Pound Euro Forecasts Pound Sterling Forecasts