FX Market Pound Sterling Data Highlights for Week Commencing 14th March

March 14, 2016 - Written by James Fuller

STORY LINK FX Market Pound Sterling Data Highlights for Week Commencing 14th March

US Data to Provoke Market Volatility This Week: Inflation Report and FOMC Rate Decision in Focus

This week’s session brings a raft of tier one data releases with the highlights coming mid-week in the USA. Our leading fundamental analyst takes a look at the likely market movers amongst the weekly statistics below –

US data releases and risk events remain the most significant in the markets, making Wednesday a key-note day in this week’s data roster.

February’s US inflation data is penned in for publication at 1230hrs and investors will be closely monitoring it for clues on the likely trajectory of the rate-hiking cycle which the Fed embarked upon in December. Last month’s inflation figure suggested that US prices are rising at a year-on-year rate of 1.4% and Dollar-holders will be looking for an increase on this print to support the Buck.

The main event of the week comes at 1800hrs on Wednesday with the publication of the latest US Federal Reserve monetary policy decision. Futures markets are pricing in a 96.1% likelihood that the Fed will opt to maintain its headline interest rate at its current level of 0.50%; however, a ‘no change’ decision does not equate to no market movement.

Fed Chair Janet Yellen holds a press conference 30 mins after the announcement and the tone of her rhetoric will give investors an inside line on the likely timing of the next Fed rate increase.

The same futures markets currently estimate that the US central bank will make its next policy tightening move on July 27th – if Yellen suggests that it could be sooner, then look for the Pound Sterling US Dollar exchange rate to fall back below the psychologically significant 1.4000 GBP USD threshold sooner rather than later.

Global Dairy Trade Auction to Provoke NZD Exchange Rate Volatility

Other highlights include tomorrow’s GlobalDairyTrade auction results – an increase in the Whole Milk Powder winning price from the last auction, held 2 weeks ago, would heavily favour the New Zealand Dollar (currency : NZD).

Meanwhile, Thursday’s session brings the publication of another significant statistic from the Southern Hemisphere in the form of February’s Australian employment data.

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TAGS: American Dollar Forecasts New Zealand Dollar Forecasts Pound Sterlin Forecasts