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 trading higher on Tuesday ahead of the UK Gross Domestic Product (GDP) release later in the session.
Earlier… 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 trading lower in Monday’s European session ahead of the Confederation of British Industry (CBI) Business Optimism, Trends Selling Prices and Trends Total Orders figures.
UPDATE: The Pound Sterling exchange rate declined further when the CBI Business Optimism number fell from 15 to only 4 in Q2.
Meanwhile, the Canadian Dollar to Pound Sterling (CAD/GBP), US Dollar (CAD/USD) and Euro (CAD/EUR) exchange rates were trading higher following Friday’s Bank of Canada (BOC) comments.
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 all be in for an interesting ride this week in the lead-up to the UK general election, as well as amid ongoing Greece negotiations and Bank of England (BoE), Federal Reserve and Bank of Canada (BOC) interest rate speculation.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast
There are only a few notable UK data releases in the week ahead, meaning the Pound Sterling to Euro (GBP/EUR) exchange rate is likely to fluctuate on any developments in Greece as well as Eurozone and UK figures. Tuesday will be a major day for the Pound with the release of the UK’s Gross Domestic Product figure.
Meanwhile, Tuesday’s GfK German Consumer Confidence Survey is forecast to cause moderate Euro fluctuations ahead of the German Consumer Price Index (CPI) release.
However, Thursday will really see things heat up between the Pound Sterling and the Euro (GBP/EUR) with the GfK UK Consumer Confidence survey published, as well as German Unemployment Change, Unemployment Rate and Eurozone Consumer Price Index figures.
Investors in the Euro will be watching for any falls in inflation and if the 19-nation currency bloc does print a negative inflation report the Euro to Pound Sterling (EUR/GBP) exchange rate could see a massive common currency sell-off.
The Pound Sterling to Euro (GBP/EUR) exchange rate could also be impacted by ongoing Greek negotiations which have thus far yielded few results.
— Robin Bew (@RobinBew) April 27, 2015
#Greece | Brussels Group to hold conference call later today in a revived effort to bridge gap in Greek bailout talks.
— Yannis Koutsomitis (@YanniKouts) April 27, 2015
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast
The Pound Sterling to US Dollar (GBP/USD) exchange rate could be in for an interesting week as investors and economists debate over whether the Bank of England or US Federal Reserve is likely to hike interest rates first.
Monday will kick-start the US data week with the release of Markit’s US Services and Composite Purchasing Managers Indexes (PMI).
Tuesday’s expected to be a much spicier day for US Dollar trading with the release of the US Consumer Confidence Index. The ecostat is highly influential and is currently forecast to rise from 101.3 to 102.5 in April.
Wednesday’s scheduled to be another major day with the release of the US Personal Consumption and US Gross Domestic Product ecostats. Additionally, the US Federal Reserve will announce its latest interest rate decision which could be a major cause of speculation.
Thursday’s US Personal Consumption Expenditure is forecast to remain at 1.4% in March on the year and could offer the US Dollar to Pound Sterling (USD/GBP) exchange rate the opportunity to move if favourably out of line with predictions.
There’s no letting up on the examination of the US economic performance next week with Friday closing the week with US ISM Manufacturing, IS Construction Spending and University of Michigan Confidence Index. The ISM Manufacturing is likely to be the most influential and investors have forecast a rise from 51.5 to 52.0.
Meanwhile, the University of Michigan Confidence figure is forecast to rise slightly from 95.9 to 96.0.
Over the course of the week various US Federal Reserve officials are due to speak which could influence the US Dollar significantly.
Any hawkish tones could see the US Dollar to Pound Sterling (USD/GBP) exchange rate rally, while any dovish notes could pressure the ‘Buck’ significantly lower.
Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate Forecast
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate will experience fluctuations on account of any changes in oil prices next week, especially amid a lack of North American data at the start of the week.
However, Thursday will change that with the publication of the highly influential Canadian Gross Domestic Product (GDP) figures. In January, the annual ecostat resided at 2.4%.
Friday will see the release of Canada’s Manufacturing Purchasing Managers Index (PMI) which is forecast to offer the Canadian Dollar to Pound Sterling (CAD/GBP) exchange rate some moderate movement.
With so many exciting data releases out in the week ahead, combined with Greek negotiations, the UK general election and central bank movements, the Pound Sterling to Canadian Dollar (GBP/CAD), Pound sterling to US Dollar (GBP/USD) and Pound Sterling to Euro (GBP/EUR) exchange rates could be in for an extremely interesting week.