The Pound Sterling to Euro (GBP/EUR), Pound Sterling to Canadian Dollar (GBP/CAD) and Pound Sterling to US Dollar (GBP/USD) exchange rates were all trending higher at the open of Tuesday’s European trading ahead of the Bank of England’s release of March’s Financial Policy Committee meeting record.
UPDATE: The Financial Policy Committee (FPC) released its statement and suggested that the effect of prolonged Greek talks or a Grexit could become damaging for UK banks and therefore institutions needed to form back-up plans.
The minutes read: ‘The commitee judged that, were Greece and its Euro area partners to be unable to reach an agreement, more significant effects could arise.’
Earlier… In addition, Markit’s UK Services and Composite Purchasing Managers Index will be out which could influence the GBP/CAD, GBP/USD and GBP/EUR exchange rates.
The Pound Sterling to Euro (GBP/EUR), Pound Sterling to US Dollar (GBP/USD) and Pound Sterling to Canadian Dollar (GBP/CAD) exchange rates are all in for heavy fluctuations in the week ahead with major data releases ready to influence trading.
Canadian Employment Data Forecast to Shake CAD/GBP, CAD/USD and CAD/EUR Currency Pairs
So, what have we got to look forward to? When it comes to the Canadian Dollar, Friday will be a massive day for ‘Loonie’ movement with the release of Canadian Net Change in Employment and Unemployment Rate ecostats.
The Canadian Unemployment Rate resided at 6.8% in March and any fall in joblessness could help boost the Canadian Dollar to Pound Sterling (CAD/GBP), Canadian Dollar to US Dollar (CAD/USD) and Canadian Dollar to Euro (CAD/EUR) exchange rates.
Will the Federal Reserve Minutes Support the US Dollar (USD) Exchange Rate?
Meanwhile, the US Dollar has several data releases of influence ahead, beginning on Monday with the US ISM Non-Manufacturing Composite Index. The index is expected to cause massive US Dollar movement in a day when European markets are closed for Easter.
Furthermore, US Federal Reserve officials are expected to speak throughout the week which could cause major US Dollar to Canadian Dollar (USD/CAD), US Dollar to Euro (USD/EUR) and US Dollar to Pound Sterling (USD/GBP) exchange rate variances.
The US Dollar to Canadian Dollar (USD/CAD) exchange rate could experience fluctuations as the Canadian Ivey Purchasing Managers Index is due for release at the same time as the ISM Non-Manufacturing Composite Index.
Tuesday will be a little quieter for the US Dollar with only the release of US Consumer Credit ecostats out for release.
US MBA Mortgage Applications will be out on Wednesday ahead of the Federal Reserve meeting minutes, but unless the data prints drastically out of line with forecasts it’s unlikely to move the US Dollar exchange rate much ahead of such influential minutes.
US Crude Oil Inventories will also be released on Wednesday and could impact the US Dollar to Canadian Dollar (USD/CAD) exchange rate dramatically. Canada’s largest export is oil and any additional stores add to the global glut which has weighed on the ‘Loonie’ exchange rate for some time.
The week’s trading will close with the UK NIESR Gross Domestic Product (GDP) Estimate and US Monthly Budget Statement figures.
Pound Sterling to Euro (GBP/EUR), US Dollar (GBP/USD) and Canadian Dollar (GBP/CAD) Exchange Rate Forecast
However, the UK and the Pound Sterling will be back in action on Tuesday with the release of Markit’s UK Services and Composite Purchasing Managers Indexes (PMI).
Wednesday’s US Federal Reserve meeting minute release is likely to rock the market as investors scrutinise the figures in hope of interest rate timeline clues.
Thursday’s going to be another important day for central banks when the Bank of England (BoE) announces its latest interest rate decision.
Although the central bank isn’t expected to make any adjustments as of yet, the release is usually enough to cause some Pound Sterling to US Dollar (GBP/USD), Pound Sterling to Canadian Dollar (GBP/CAD) and Pound Sterling to Euro (GBP/EUR) exchange rate movement.
Canada’s Building Permits and New Housing Price Index will also be out on Thursday.
Friday will close the week for UK data with the release of Manufacturing Production and Industrial Production figures.
The Eurozone could also produce some significant data this week such as the Sentix Investor Confidence index on Monday.
German Factory Orders, and Markit’s Eurozone and German Retail PMI is out on Wednesday ahead of the Federal Reserve meeting minutes which could cause interesting fluctuations in the Euro to US Dollar (EUR/USD) exchange rate.
German Industrial Production and German Trade Balance data will be out on Thursday and will close the week for Eurozone domestic data.
Euro to Pound Sterling (EUR/GBP) Exchange Rate Sensitive to Greek Negotiations
than the moderate Eurozone releases, a lot of Euro to Canadian Dollar (EUR/CAD), Euro to US Dollar (EUR/USD) and Euro to Pound Sterling (EUR/GBP) exchange rate movement will be accredited to any development in Greek negotiations.
Greece is expected to meet with Russia next week in what some experts have pegged as a deal to secure a back-up plan in case Eurozone meetings don’t end well.
At the close of the week, the Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate was reaching 1.8654. The Pound Sterling to US Dollar (GBP/USD) exchange rate was trading at 1.4835. The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.3641.