Pound Sterling (GBP)
With no domestic data due for release on Wednesday Sterling is likely to continue trending similarly to its current position against all of its major peers. Any significant Sterling movement will be dictated by foreign currency changes.
The ongoing tension surrounding the Scottish Referendum is likely to continue to weigh heavily on the Pound.
Euro (EUR)
Wednesday will be significant in terms of German economic standing and the strength of the Euro. The yearly and monthly German Import Price Indexes will go some way towards damage limitation should they post positive results. However both are forecast to have declined from the previous percentage.
German Consumer Confidence will, perhaps, hold even more weighting both economically and for the strength of the Euro given the recent run of poor German data publications. It is forecast to drop fractionally, but a dramatic decrease will send the waning Euro further into decline.
US Dollar (USD)
There are several US domestic data publications on Wednesday but only one of significance in terms of market movement. The MBA Mortgage Applications will be of interest to those invested in the ‘Greenback’ (USD) as growth in mortgages suggests a healthy housing market. Due to the multiplier effect housing has on the rest of the economy, rising activity suggests increased household income and economic expansion.
Australian Dollar (AUD)
There are no domestic data publications pertaining to the Australian economy on Wednesday. Movement is therefore most likely to be dictated by foreign currency changes, especially the New Zealand Dollar.
The ‘Aussie’ (AUD) may also be affected by Wednesday’s Chinese Consumer Sentiment data given how sparse the day’s economic calendar is.
New Zealand Dollar (NZD)
Tuesday night’s Food Prices data is likely to affect standings for the New Zealand Dollar on Wednesday. Those invested in the New Zealand Dollar will be hoping for a decline following last week’s cut dairy prices.
There are no domestic data publications on Wednesday so movement is most likely to be dictated by foreign currency movement.
Canadian Dollar (CAD)
Given the quiet economic calendar on Wednesday it is perhaps unsurprising that there is no Canadian data to be published.
Those invested in the ‘Loonie’ (CAD) will be hoping for a slowing of the US Dollar’s bullish run.
South African Rand (ZAR)
Once again there is no domestic data pertaining to the South African Rand to dictate movement. However it is likely that the current situation, concerning the illegal distribution of coal blocks, will weigh heavily on the Rand.
It is also just as likely that the Rand will continue to gain against many of its peers in response to the deflated demand for the Euro.
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