Forecast for this week- Non Farm Payrolls, BoE rate decision, Retail sales in Europe

The Euro has started to gain strength through today; We have seen the GBPEUR rates go from 1.2785 down to 1.2694.

So what’s next over the next few days?

Wednesday 7th January

• German Retail Sales (Expected in weak)


• German Unemployment Rate (Expected in strong)


• Euro Zone CPI- (Inflation- Expected in weak)

Thursday 8Th January

• German factory orders (Expected weak)


• Euro Zone retail sales (Expected weak)


• Bank Of England Rate Decision (No change expected)


• USD initial jobless claims (Expected strong)

Friday 9th January

• German Industrial Production (Expected weak)


• German Trade Balance (Expected weak)


• GBP Industrial & Manufacturing production (Expected strong)


• USD Non-farm payrolls


• USD Unemployment (Expected in strong)


• GBP NIESR GDP Estimate

The above shows that for the rest of the week we are expecting a lot of weakness coming out of the Eurozone- with the looming fears over the Greece elections we can expect a lot of volatility on the Euro so if you are trading this currency I urge you to hedge yourself, please contact me for further analysis on this on 01322 319 555.

The main focus for USD will be Friday with the ever unpredictable Non-Farm Payrolls data, as ever I urge clients to purchase their USD prior to this, as this data his historically known to never come out anywhere near expectations, and is not worth the gamble for those of you looking to buy or sell the Dollar.

It is worth knowing that with the current prices of Oil being at $55 a barrel, down from $100 a barrel, we are now going to start seeing a global slow down, with inflation slowing down in the UK, Europe, USA & Russia (Which we have already seen).

The effects on this will show on exchange rates, though the USA & UK want to put up their interest rates, this will not be viable while inflation is low, so though we are expecting a lot of strength in the U.S Dollar this year, please be aware of the fact that every month the U.S & UK announce that they will be leaving their interest rates as they are, we will see these currencies weaken.

For further analysis please don’t hesitate to contact me.

prem.raja@currencies4you.com

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