This Week's British Pound Sterling Data Highlights & GBP Conversion Rate Forecasts

Published: Monday, 7 September 2015 12:00 BST - Written by Frank Davies

STORY LINK This Week's British Pound Sterling Data Highlights & GBP Conversion Rate Forecasts

Chinese News Triggers Global Currency Market Movement

The Chinese Yuan (currency : CNY) is difficult to trade on the global markets thanks to stringent currency controls set by the Beijing administration. However, that hasn’t stopped Chinese data having a major effect on the value of each one of the sixteen most actively traded global tenders during recent weeks thanks to the effect which it has had on risk sentiment.

GBP Conversion Rate Forecast to Fluctuate on Chinese Data; Pound Sterling to AUD, NZD, CAD Shifts Predicted

Thursday could therefore be market-moving for several leading units, with three tier one data releases due out of China. The New Yuan Loans data from Asia’s number one economic superpower is always closely-monitored and with analysts expecting the August number to show a pronounced reduction from July’s CHY1,480bn worth of fresh advances, this edition could be of particular significance. If this forecast turns out to be correct, then expect the high-yielding Commodity Dollars to ship further support and the Pound Sterling to record sustained gains against the Australian Dollar (currency : AUD) New Zealand Dollar (currency : NZD) and the Canadian Dollar (currency : CAD). The latest Aggregate Financing figure from China, also set for release on Thursday, is less likely to prove market-moving, but the August Chinese Consumer Price Index inflation numbers could well alter the relative value of many leading currencies.

BOC Interest Rate Announcement Predicted to Impact GBP-CAD Exchange Rate Trading

A brace of central bank monetary policy decisions during the middle part of the week also have the potential to be seminal; the Bank of Canada (BoC) is considered unlikely to change its key lending rate from its current record low of 0.50% this month. Most analysts believe its cut of earlier this year was a case of ‘one and done’, so any message from the BoC that another trimming of rates could be on the cards would send the Pound Sterling Canadian Dollar GBP CAD exchange rate sharply higher.

British Pound to New Zealand Dollar to Return to Best Conversion Rates on RBNZ?

The Reserve Bank of New Zealand (RBNZ) follows the BoC with its latest announcement a few hours later and most FX forecasters believe that there is a significantly higher percentage chance that New Zealand’s policymakers will cut their Official Cash Rate (OCR). A downward move to below the 3.0% level for the first time in the RBNZ’s history would spell bad news for the New Zealand Dollar (currency : NZD). Such an outcome would be likely to send the Pound Sterling Kiwi Dollar exchange rate back up into the 2.5000s for the first time since the collapse in risk sentiment of last month’s ‘Black Monday’.

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TAGS: Currency Predictions Daily Currency Updates Poun Forecasts