Global FX Market : Forecast Economic Data Highlights for This Week

May 16, 2016 - Written by John Cameron

STORY LINK Global FX Market : Forecast Economic Data Highlights for This Week

The Pound could be in store for a rise in the near-future, if Wednesday morning's unemployment, earnings, and claims stats come out positively for the UK.

GBP Exchange Rate: UK Consumer Prices in Focus

Today’s session promises to be a quiet one, with no tier one data releases scheduled. However, tomorrow is peppered with significant statistics, with April’s UK Consumer Price Index inflation numbers leading the way.

Last month’s version of the benchmark British price rise stats bettered analysts’ expectations and the Pound Sterling (currency : GBP) recorded strong gains as a consequence. Holders of Sterling-denominated assets will be looking for the CPI numbers to show a further increase from March’s year-on-year print of 0.5% to provide evidence that the Bank of England may be in a position to increase its headline interest rate for the first time in almost a decade later this year.

GlobalDairyAuction to Provoke New Zealand Dollar Exchange Rate Volatility

The latest WorldDairyTrade online auction results are due for release shortly after the UK inflation numbers. The results of the auction are expected to be market-moving for the New Zealand Dollar (currency : NZD), with the hammer price of Whole Milk Powder (WMP) being of particular significance. The watershed, as far as Kiwi-holders are concerned, is last auction’s WMP hammer price of USD2,176.

Tomorrow’s afternoon session brings the publication of April inflation data from the States. The result will inform investors’ expectations regarding the timing of the next US Federal Reserve interest rate increase, with an increase on March’s annualised CPI print of 0.9% needed in order to drive the US Dollar (currency : USD) higher.

Japanese Q1 Gross Domestic Product to Cause Japanese Yen Exchange Rate Changes

Highlights for the remainder of the week come in the form of Q1 Gross Domestic Product data from Japan, out early on Wednesday morning, and April’s Australian labour market data, due for release during the early hours of Thursday morning.

The Japanese Yen (currency : JPY) has been uncomfortably strong, as far as the nation’s policymakers are concerned, during recent months. A tame set of domestic growth numbers could bring a helpful bout of selling pressure.

Meanwhile, the Aussie jobs data are expected to point to a healthy level of job creation last month, so some strengthening of the Australian Dollar (currency : AUD) is expected.

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TAGS: American Dollar Forecasts Japanese Yen Forecasts New Zealand Dollar| Forecasts