The Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) exchange rates could fluctuate rather dramatically in the week ahead with both UK and US inflation figures out for release amid ongoing Greek negotiations.
Pound Sterling to US Dollar (GBP/USD) Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast
Greece is expected to step up the pace in talks with its creditors as a new austerity deal attempts to be struck. However, Eurozone Consumer Confidence will be out on Monday which is likely to impact the Euro to US Dollar (EUR/USD) and Euro to British Pound (EUR/GBP) exchange rates.
Tuesday will also be a big day for investors in the single currency with the release of Markit’s German, French and Eurozone Services, Manufacturing and Composite Purchasing Managers Indexes (PMI) out for release—an event that could cause moderate movement in the Euro.
Wednesday’s IFO German Currency Assessment, Expectations and Business Climate stats are also expected to cause some Euro exchange rate fluctuations ahead of Thursday’s German GfK Consumer Confidence number.
The Pound will also be in for some major releases this week with Tuesday perhaps being the most influential day for GBP/USD and GBP/EUR swings.
Tuesday’s UK Consumer Price Index (CPI) figures are expected to impact the Pound Sterling majorly as inflation is a factor the Bank of England (BoE) is taking into account before adjusting interest rates.
The US Dollar is also likely to fluctuate on Tuesday with the release of US CPI as well. Both the Federal Reserve and Bank of England are in close contention to be the first to hike interest rates since the onset of the global financial crisis and therefore investors will be eyeing Tuesday’s inflation figures very carefully.
Heavy US data will continue on Wednesday when the US releases its latest Durable Goods Orders stat. In addition, any comments made by central banks over the course of the week could dramatically impact the GBP/USD and GBP/EUR exchange rates.
Thursday’s UK Retail Sales and CBI Reported Sales could offer some support to the Pound if favourable, while Markit’s US Composite and Services Purchasing Managers Indexes could also be of moderate importance for US Dollar trading.
The Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) exchange rates could fluctuate on account of any political debates this week as the UK general election draws closer.
