Daily Pound Sterling (GBP) Foreign Currency Market Data Forecast for this Week - Brexit continues to damage the Pound

June 29, 2016 - Written by Tim Boyer

STORY LINK Daily Pound Sterling (GBP) Foreign Currency Market Data Forecast for this Week - Brexit continues to damage the Pound

Sterling has been rocked today by a string of revelations, including Boris Johnson pulling out of the PM running and the BoE warning of interest rate cuts.

The UK is set to have GDP stats incoming, which could indicate how badly 'Brexit' fears have hit the UK economy.

EU Referendum Uncertainty Continues to Dominate Trader Focus

One major risk event – the decision by UK voters to leave the European Union at last Thursday’s referendum – has dominated the thoughts of investors in the global currency markets during recent days. A mass shift by market participants out of risk-laden assets and into safe haven assets including gold and the low-yielding Swiss Franc (currency : CHF) and Japanese Yen (currency : JPY).

This flight to quality from investors has been evidenced by a spike in the closely-monitored $VIX index which measures the volume of protective ‘put’ orders, (akin to insurance policies), placed by Chicagoan equities traders on their share purchases, spike to above the $26.60 during a flurry of activity on Monday afternoon. The same metric had been trading almost 50% lower in the $17.00s on the eve of the UK European Union membership referendum a week ago.

Will Domestic Data be More Impactful Now Markets Have Settled?

However, with a packed schedule of data releases, today’s session could see investors shift their focus onto the fundamentals of the world’s major economies.

The two most significant data sets today are bother published this afternoon; the latest German Consumer Price Index inflation data leads the way at 1300hrs. Investors holding the euro (currency : EUR) will be hoping that the provisional June version of the keynote data set prints at above the annualised May result of 0.1% - anything less than this and the shared currency is forecast to come under renewed selling pressure.

Meanwhile, 30 mins after the Teutonic price rise, May’s US Personal Consumption Expenditure Core figure is due for release.

A slew of American House Price data is expected ninety minutes later, alongside the latest weekly US Crude Oil Inventories numbers. These figures have provoked sharp movements for global oil prices in recent months and analysts expect that evidence of another drop in the level of American stocks of ‘Black Gold’ could send both the Norwegian Krone (currency : NOK) and the Canadian Dollar (currency : CAD) higher against the Pound.

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