The Pound Sterling to Euro (GBP/EUR), Pound Sterling to US Dollar (GBP/USD) and Pound Sterling to Canadian Dollar (GBP/CAD) exchange rates could fluctuate next week with several massive European and North American data releases scheduled.
Pound Sterling Exchange Rate Forecast: GBP/EUR, GBP/USD, GBP/CAD
The Pound Sterling’s most influential catalysts next week will be UK Net Consumer Credit, Net Lending Secured on Dwellings, Mortgage Approvals and GfK Consumer Confidence on Monday; final UK Gross Domestic Product (GDP) stats on Tuesday; Markit’s Manufacturing Purchasing Managers Index (PMI) on Wednesday and Markit’s Construction PMI on Thursday.
However, none of the UK data is of extremely high significance, lending a lot of Pound Sterling exchange rate movement to Eurozone, Canadian and US data.
Monday will be an interesting day for the Euro with the German Consumer Price Index (CPI) released. Inflation resided at 0.1% in February on the year and any drop lower could place pressure on the Euro to Pound Sterling (EUR/GBP) exchange rate.
Tuesday will continue with inflation data, with the Eurozone’s Consumer Price Index due for publication. The non-core CPI is forecast to fall from -0.3% to -0.4% in March.
German Unemployment Rate and Unemployment Change ecostats will also be out, and the Euro exchange rate could run into disappointment if joblessness doesn’t decline from 6.5% to 6.4% in line with predictions The Eurozone Unemployment Rate will also be unveiled.
US Dollar (USD) Exchange Rate Forecast for Massive Movement
Meanwhile, the US Dollar has several high-impact opportunities to fluctuate, such as following the release of Monday’s US Personal Consumption Expenditure and Tuesday’s Consumer Confidence figures. Sentiment is expected to decline from 96.4 to 96.3 in March and could be an event to pressure the ‘Buck’ lower against a host of other majors.
Wednesday will be another day of influence with US ISM Manufacturing data out for release. March is expected to see a slip from 52.9 to 52.5. However, if several pieces of US data show signs of a slowdown, the US Dollar to Pound Sterling (USD/GBP) exchange rate could fall.
Friday will pick up the pace again for the US Dollar to Pound Sterling (USD/GBP), US Dollar to Euro (USD/EUR) and US Dollar to Canadian Dollar (USD/CAD) exchange rates in what’s perhaps forecast to be the most influential data release of the week – US Change in Non-Farm Payrolls and US Unemployment Rate figures.
Canadian Dollar trading may heat up on Tuesday with the release of Canadian Gross Domestic Product and Average Weekly Earnings figures. The Canadian Manufacturing Purchasing Managers Index (PMI) will also be out on Wednesday.
The price of oil is also expected to have a massive influence on the Canadian Dollar in the week ahead as the sensitive and volatile commodity has been experiencing notable movement of late.
Prices spiked last week when the conflict between Saudi Arabia and Yemen caused supply concerns, but fell back before the weekend.
Additionally, if speculation regarding Bank of England (BoE) or Federal Reserve interest rate hikes increase, the Pound Sterling to Euro (GBP/EUR), Pound Sterling to US Dollar (GBP/USD) and Pound Sterling to Canadian Dollar (GBP/CAD) exchange rates could fluctuate.
