Weekly Forecast

After a relaxing bank holiday weekend; it's time to get back to the daily grind!

Though it was a bank holiday in the UK today, there has been data releases from Europe & the U.S with Eurozone Sentix Investor Confidence coming out weaker than expected and producer price index coming out on par out of Europe.

This hasn't really affected the exchange rates in a major way, however over the next 4 days we are definitely looking at some market moving data releases;

Tuesday-

We have a lot of medium priority data coming out of France, Italy & Germany in the means of Markit Composite data, which is expected to come in stronger than previous or on par, we also have the same data release coming out of the UK.

The main data release to look out for on Tuesday is retail sales data coming out of Europe, which is expected in strong, if this happens, then we may see a retracement in the current GBPEUR exchange rates.

Wednesday-

We have Germany factory orders; with Germany being the largest exporter in Europe, logic says this data should come out on par, if not stronger than expected in light of other economies such as the UK's growing again and more orders being made.

Thursday-

The main focus points on Thursday will be both the BoE & ECB rate decision; both are expected to keep their interest rates on hold, however it is worth noting that any shock statements about interest rate rises in the future or talks of QE is what will move the exchange rates the most on this day, so it is worth keeping an eye out.

Friday-

Friday is probably the busiest day this week for people who are looking to sell GBP, with GBP Industrial production & manufacturing data being released, it has already been stated that the UK's exporting has increased in a major way over the past 12 months, and these data releases will either back up this statement or prove it to be false; this alongside the UK's GDP estimate in the afternoon should prove to give a busy day on the markets.

As a whole this week sees a lot of data releases, and if you are looking to make a foreign exchange transaction, it may be worth taking a closer look into what data releases will help or hinder your transaction, if you need any specific guidance then please don't hesitate to email me on prem.raja@currencies4you.com

Thank you, and have a good week!