The Pound is forecast to continue to trade positively against its peers next week as upcoming data releases look set to bolster the view that the UK’s economic recovery is continuing to accelerate.
The start of the week is relatively devoid of domestic data but data out of China and Europe are likely to see the Pound make gains against the Australian Dollar. If the Chinese data disappoints then the ‘Aussie’ will fall as the currency often performs badly when data out of Australia’s biggest trading partner disappoints.
A relatively minor UK employment confidence report is set for release on Monday and is likely to show an improvement in confidence as the nation’s economy continues to improve. The Euro is likely to go higher however if an investor confidence report comes in positively. Other data out of several Eurozone member states could offer the currency support seeing as how recent data releases have begun to show that a Eurozone recovery is slowly emerging.
Tuesday sees the release of both manufacturing and industrial production data. Both sets are forecast to come in positively and show that both sectors expanded further in January. The rate of production could show signs of slowing but that will most likely be shrugged off as a consequence of the month’s extreme weather conditions.
The GBP/EUR exchange rate is forecast to remain in the region of 1.20 to 1.21.
The GBP/USD exchange is forecast to stay within the 1.66 to 1.67 range
Major UK data releases for next week:
Tuesday March 11th – Manufacturing Production (YoY & MoM)
Industrial Production (YoY & MoM)
NIESR GDP Estimate
Wednesday March 12th – Balance of trade
Friday March 14th – UK Construction Output
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