FX Currency News: Today?s Pound, Euro Exchange Rate Forecast

July 29, 2016 - Written by Tim Boyer

STORY LINK FX Currency News: Today?s Pound, Euro Exchange Rate Forecast

Busy Data Day Forecast to Impact Pound, Euro, Canadian Dollar and US Dollar Exchange Rates

Today’s session brings a packed schedule of data publications with tier one statistics penned in for publication across the globe. Our data analyst takes a look at the likely effects of the key economic numbers below -

Pound Sterling (GBP) Exchange Rates Expected to Decline on UK Data

The UK leads the way with June’s domestic Mortgage Approval data, penned in for publication at 0930hrs. Investors will be eyeing these numbers closely following the worst UK Composite PMI survey since 2009, released last week. The figure mostly covers the period leading up to last month’s surprise Brexit vote, but evidence that confidence was draining from British housing market participants even before the referendum result is forecast to increase the selling pressure on the Pound Sterling (currency : GBP).

GDP Data Predicted to Inspire Euro (EUR) Conversion Rate Movement

One of the day’s most significant data sets comes out half an hour later with the publication of the seasonally-adjusted version of the eurozone Q2 Gross Domestic Product figures; a marginal decrease from Q1’s counterpart year-on-year figure of 1.7% is anticipated, but anything below the expected result of 1.5% will hit the euro (currency : EUR) extremely hard. A renewed push higher for the GBP EUR exchange rate towards the 1.2000 threshold cannot be ruled out in such a circumstance.

Currency Forecast: USD, CAD Exchange Rate Volatility to Follow Domestic Growth Figures

The afternoon session brings the release of more Gross Domestic Product numbers, this time from North America. Both the Canadian and US version of the keynote growth numbers are due for publication at 1330hrs BST. The annualised Canadian GDP numbers are expected to show a slight slowing in the pace of the nation’s growth, but the US version is anticipated to be much stronger.

Q1’s American growth figures, published at the same time, showed at an annualised 1.1% but this afternoon’s numbers are predicted to reveal a dramatic increase to a year-on-year 2.6%. Such a result would ramp up investor expectations that the Federal Reserve will be increasing its interest rate at least once before the end of the year. This outcome would be almost certain to send the GBP USD exchange rate back down below the 1.3000 level once more.

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