Global Foreign Exchange Data Forecast ? For Week Ending May 14th

May 9, 2016 - Written by Toni Johnson

STORY LINK Global Foreign Exchange Data Forecast ? For Week Ending May 14th

The most notable economic announcements to watch out for tomorrow will consist of the morning's UK industrial and manufacturing results and the afternoon's US mortgage applications and monthly budget statement.

Tomorrow will bring some high-impact Chinese ecostats concerning inflation, aggregate financing and new Yuan loans. As China has been closely monitored for signs of slowdown, positive outcomes are a must if global concerns about economies are to be calmed.

Pound Sterling Exchange Rate: BoE Rate Decision to Provoke Volatility

This week’s session brings a relatively light data roster, but the risk events which are scheduled have the potential to be market-moving.

The centrepiece, as far as holders of the Pound Sterling (currency : GBP) are concerned, comes in the form of the latest Bank of England (BoE) monetary policy announcement. Once again, the Old Lady of Threadneedle Street is expected to maintain its headline interest rate at its current record low of 0.50%. Anything other than this would represent a massive surprise, notwithstanding the recent uptick in the level of UK inflation.

The BoE will be publishing the minutes of its policy meeting as well as its latest Quarterly Inflation Report at the same time, making this a ‘Super Thursday’ for Sterling-watchers. The tone of the BoE’s commentary and any alteration to its growth and inflation forecasts will be closely-monitored and will have a pronounced bearing on the Pound’s progress as we head into the weekend.

Greek Debt Concerns to Weigh on Euro Demand

Elsewhere, the eurogroup of Finance Ministers meet in Brussels on Monday and top of the agenda will be Greece’s ongoing debt tragedy.

Friday’s session saw Head of the International Monetary Fund (IMF) Christine Lagarde publish a letter encouraging the euroland’s moneymen to consider altering the terms of their current debt deal with Greece. Lagarde stated that her organisation believes, ‘that specific measures, debt restructuring, and financing must now be discussed simultaneously.’

Such a move, which would be tantamount to another technical debt default from the struggling Hellenic state, would be likely to see investors shun the euro (currency : EUR) and risk-laden assets including the Australian Dollar (currency : AUD), New Zealand Dollar (currency : NZD) and the South African Rand (currency : ZAR) alike.

The euro will be afforded further near-term direction from Friday morning’s German and whole of eurozone Gross Domestic Product (GDP) data.

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TAGS: Euro Forecasts Euro Pound Forecasts Pound Euro Forecasts Pound Sterling Forecasts