This Week's Global Exchange Rate and Currency Market Forecast for GBP, EUR

September 12, 2016 - Written by John Cameron

STORY LINK This Week's Global Exchange Rate and Currency Market Forecast for GBP, EUR

What News is likely to Impact Pound Sterling to Euro (GBP/EUR), US Dollar (GBP/USD) Exchange Rates this Week?

Several stand-out data sets and risk events are expected to determine price action for the world’s premier currencies, including Pound Sterling (GBP), the Euro (EUR) and US Dollar (USD) during this week’s session. Our leading data analyst takes a close look at the highlights below…

UK Inflation Data Could Trigger Pound Sterling (GBP) Exchange Rate Volatility

Holders of the Pound Sterling (currency : GBP) will be eyeing tomorrow morning’s domestic Consumer Price Index data for August for further clues on the next step from the Bank of England (BoE). The Bank’s policymakers have been emphatic in their insistence that further cuts to local interest rates are possible and rate setter Kristin Forbes even suggested to the House of Commons Select Committee last week that her committee might expand the policy tools which it makes use of. If tomorrow’s local inflation figures suggest that the pace of UK prices is slipping back following the initial post-Brexit bounce which the weakening Pound engendered, then talk of more BoE policy loosening is forecast to take the Pound lower.

Sterling-watchers and investors with an interest in the Pound Sterling to Euro exchange rate won’t have to wait long for the next major UK risk event – the Bank of England makes its latest monetary policy announcement on Thursday and market movement could follow. Unless tomorrow’s inflation numbers surprise to the downside, any move from the Bank is considered highly unlikely for this week. However, analysts will be poring over the minutes of this week’s meeting, published at the same time, for clues on the potential for any policy shift and for details of the additional policy tools which Kristin Forbes alluded to last week.

Eurozone Ecostats Forecast to Impact Pound Euro Exchange Rate Trading, New Zealand Dollar (NZD) Exchange Rate Movement also Predicted

But it won't be just UK news triggering movement in the Pound Sterling to Euro (GBP/EUR) exchange rate.

Meanwhile, tomorrow’s session also brings the publication of the closely-monitored whole of Eurozone ZEW Survey with holders of the Euro (currency : EUR) looking for a print of above last month’s 4.6 to provide evidence that the continental European economy is beginning to stir back to life.

Elsewhere, Wednesday night’s New Zealand Q2 Gross Domestic Product data will provide the New Zealand Dollar (currency : NZD) with further direction, while Thursday morning’s Australian labour market figures for last month are forecast to do likewise for the Australian Dollar (currency : AUD).

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: Daily Currency Updates Pound Euro Forecasts Pound Sterling Forecasts