GBP/EUR
The British Pound to Euro (GBP/EUR) exchange rate could be in for major movement next week if the possibility of Greece leaving the Eurozone looks likely. However, there’s enough data out over the week to keep EUR/GBP (EUR/GBP) exchange rate on its toes regardless of any Greek developments.
German IFO Business Assessment, Business Climate and Expectations stats are scheduled for release on Monday and are forecast to be one of the most influential events to occur in the market in the European session.
Highly influential data will be staved off until Thursday when German Unemployment Rate and Unemployment Change figures emerge. Friday will be another major Euro data day when the German Consumer Price Index (CPI) is released.
February’s preliminary inflation reading is forecast to rise from -0.4% to -0.2% and could be an event to see the Euro gain stability.
The Euro to British Pound (EUR/GBP) exchange rate was trending in the region of 0.7392 on Friday.
GBP/USD
The British Pound to US Dollar (GBP/USD) exchange rate is in for a wild ride in the week ahead with the US Dollar forecast to fluctuate significantly. Tuesday’s US Consumer Confidence release is forecast to decline from 102.9 to 100.0 in February and could cause significant US Dollar depreciation if it does.
Thursday will keep up the pressure on the US Dollar exchange rate with the US Consumer Price Index release. The Federal Reserve recently became more dovish in its tone when it published its latest meeting minutes which suggested a period of lower interest rates would be favourable amid a backdrop of falling inflation.
Therefore, the US Dollar could fall dramatically if inflation falls out of line with forecasts. Moreover, if investors price out 2015 Federal Reserve rate hikes, the US Dollar to British Pound (USD/GBP) exchange rate could nosedive.
Friday’s US Gross Domestic Product (GDP) stats are out on Friday as well as Personal Consumption figures—both data will be of high influence to the US Dollar.
The US Dollar to British Pound (USD/GBP) exchange rate was trending in the region of 0.6506 on Friday.
GBP/CAD
The British Pound to Canadian Dollar (GBP/CAD) exchange rate is likely to experience movement on Thursday with Canadian Consumer Price Index stats due for publication. The Bank of Canada (BOC) expects its measure to fall from 2.2% to 2.1%, while the regular inflation report will see much bigger losses from 1.5% to 0.7%.
In addition, any changes in oil prices could rock the ‘Loonie’ exchange rate.
The Canadian Dollar to British Pound (CAD/GBP) exchange rate was trending in the region of 0.5198 on Friday.
GBP/NZD
The British Pound to New Zealand Dollar (GBP/NZD) exchange rate could be in for major movement on Tuesday when the Reserve Bank of New Zealand (RBNZ) announces its Two-Year Inflation Expectation.
Other factors that could influence the NZD/GBP currency pair include New Zealand Credit Card Spending stats on Monday and New Zealand Trade Balance figures on Wednesday.
The New Zealand Dollar to British Pound (NZD/GBP) exchange rate was trending in the region of 0.4897 on Friday.
GBP/INR
The British Pound to Indian Rupee (GBP/INR) exchange rate is likely to move on account of UK data and risk sentiment next week as Indian data is in short supply. The next influential ecostat from the Indian economy will come in the form of HSBC’s Manufacturing PMI on Monday 2nd March. The February figure is expected to decline from 52.9 to 52.6.
The Indian Rupee to British Pound (INR/GBP) exchange rate was trending in the region of 0.0105 on Friday.
British Pound Exchange Rate Forecast: GBP/EUR, GBP/CAD, GBP/USD, GBP/NZD, GBP/INR
The British Pound is in for a heavy day on Thursday with UK GDP figures scheduled for publication. In addition, Friday’s GfK Consumer Confidence Survey could also offer the British Pound (GBP) exchange rate moderate movement.
Monday’s CBI Reported Sales are forecast to see mild movement in the British Pound (GBP) exchange rate.
The British Pound is likely to fluctuate in response to Tuesday’s BBA Loans for House Purchase figures.
The UK’s GDP data is the most influential event scheduled that could cause British Pound exchange rate fluctuations; the Q3 figure resided at 2.7%.
The British Pound to Euro (GBP/EUR), Canadian Dollar (GBP/CAD) and New Zealand Dollar (GBP/NZD) recorded gains at the beginning of Monday’s European session while the British Pound to US Dollar (GBP/USD) and Indian Rupee (GBP/INR) exchange rates softened ahead of Bank of England (BoE) officials speaking.
The British Pound to Euro (GBP/EUR), Canadian Dollar (GBP/CAD), New Zealand Dollar (GBP/NZD), US Dollar (GBP/USD) and Indian Rupee (GBP/INR) exchange rates all advanced in the second half of Monday’s European trading as investors forecast a hawkish tone from Bank of England (BoE) Governor Mark Carney on Tuesday.
Tuesday will be full of highly influential US data, and therefore the British Pound to US Dollar exchange rate could be in for some hefty fluctuations.
In addition, the Reserve Bank of New Zealand (RBNZ) reduced its Two-Year Inflation Expectation from 2.1% to 1.80%.
The British Pound to Euro (GBP/EUR), Canadian Dollar (GBP/CAD), New Zealand Dollar (GBP/NZD) and Indian Rupee (GBP/INR) exchange rates all recorded gains in the first half of Tuesday’s European session while the British Pound to US Dollar (GBP/USD) exchange rate remained in a narrow range.
