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Weekly FX Currency Market Pound Sterling (GBP) Prominent Data Forecast

February 29, 2016 - Written by Toni Johnson

World Trade Auction Predicted to Cause GBP/NZD Exchange Rate Volatility Today

The coming week brings a blank session for tier one UK data releases, although the 'Brexit' is sure to spark some GBP movement as news, predictions and accusations continue to fly, but with volatility once again forecast across all asset classes, economic statistics from far flung corners of the world could trigger pronounced price action.

The early hours of tomorrow morning are likely to cause distinct movement for the Antipodean Dollars, with the latest WorldTrade Dairy Auction results having a marked effect on the relative value of the New Zealand Dollar (currency : NZD).

The fortnightly online marketplace average winning price last time around was USD2,235 – a print of significantly below this will hit the Kiwi Dollar, which is dependent upon exports of milk powder to China. Such an outcome is forecast to see the GBP NZD exchange rate, which fell to well below the 2.1000 threshold last week, reverse a portion of its recent losses.

RBA Expected to Hold Rates

In spite of the continuing softness of world commodities prices, most analysts expect the Reserve Bank of Australia (RBA) to announce that it is maintaining its headline rate of interest at its current level of 2.00% early tomorrow morning.

Given increased fears regarding the very real prospect of a ‘hard landing’ for China’s economy, a surprise rate cut from the RBA cannot be ruled out. Such a result would send the GBP AUD exchange rate sharply higher.

GBP/USD Conversion Rate Forecast to Rebound if US Ecostats Continue to Disappoint

Meanwhile, investors will have to wait until the final session of the week for the main risk event. Last month’s US Non-Farm Payroll employment data pointed to a far lower than anticipated level of job creation in the States during January.

If this week’s statistics confirm that employment generation Stateside remained sluggish last month, then the GBP USD exchange rate is forecast to bounce from the seven year low which it struck during last week’s trading session.

However, if the official labour market numbers point to an increased pace of real wage growth, then such a move could be mitigated.
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TAGS: Pound Australian Dollar Forecasts Pound Dollar Forecasts Pound New Z Forecasts

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