Global Currency Market Data Forecast for Week Beginning 26th September

September 26, 2016 - Written by John Cameron

STORY LINK Global Currency Market Data Forecast for Week Beginning 26th September

This week’s session in the global currency markets brings a lighter data roster than last week. However, a brace of key releases from the Euroland could prove to be market-moving and a sprinkling of data from economies in North American and Asia brings further interest. Our leading data analyst takes a look at the forecast highlights below…

German Labour Market Figures could Renew Euro Selling Pressure

The main risk events in the mainland European economy come at the end of the week, with Thursday’s German labour market figures leading the way. The overall level of German joblessness stood at 6.1% at the last count – if the September figure shows an uptick, then expect the Euro (currency : EUR) to suffer renewed selling pressure.

Meanwhile, Friday’s session brings the publication of September’s all-important Consumer Price Index inflation data. The European Central Bank’s (ECB) monetary policy is as loose as it has ever been – however, Euro-watchers will be eyeing the CPI number for any hint that the Euroland economy is slipping towards another potentially decimating bout of deflation. Such a result will stoke rumours that the ECB will extend its Quantitative Easing programme past its current March 2017 end date.

Strong US Consumer Confidence Uptick to Boost USD?

Elsewhere, the next 48hrs bring two sets of tier one data from the world’s premier economy; look for a strong showing from tomorrow’s US Consumer Confidence survey and Wednesday’s US Durable Goods Orders data to provide the US Dollar (currency : USD) with a further boost which could send the GBP USD exchange rate through to a fresh 31-year low.

Demand for Risk Forecast to Strengthen if Chinese Manufacturing PMI Advances

Friday brings the publication of September’s Purchasing Managers Index survey of China’s vast manufacturing sector with a print of above last month’s 50.4 result needed to maintain the ‘risk-on’ trading environment which was prevalent in the markets last week. Such a result will favour the risk-driven Australian Dollar (currency : AUD) and New Zealand Dollar (currency : NZD).

July’s annualised Gross Domestic Product data from Canada is the final data of note for the week with a result of above 1.1% will help the Canadian Dollar (currency : CAD).

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TAGS: Currency Predictions