What could impact sterling exchange rates this week? GBPEUR, GBP/USD, GBP/AUD

As we start another busy trading week I will outline below would data could impact sterling exchange rates this week. It is a busy week with much of the notable data scheduled towards the latter part of the working week. I have outlined this below and how it could impact the pound against a number of key major currencies.

What could impact exchange rates this week?

Monday June 18 – today has been a relatively quiet day with little data of note. We have a number of speeches from key Fed members and also a speech from European Central Bank (ECB) President Mario Draghi. Nothing of note is expected from these speeches but there are worth watching out for to see if any clues are given with regards to future monetary policy.

Tuesday June 19 – data starts early with the release of the Reserve Bank of Australia’s (RBA) minutes. This will outline how the Australian economy is performing and may give clues as to what the central bank is thinking with regards to interest rates. This can cause some big movements for the Aussie. At 09:30 we again have a number of speeches from  ECB President Draghi and his colleague Peter Praet. At 10:00 look out for Euro Zone construction output. In the afternoon we have US data in the form of building permits and a speech from Fed member James Bullard. There is no data of note from the UK.

Wednesday June 20 – again a very quiet day from the UK with the day dominated by speeches from Mario Draghi and the head of the Fed Jerome Powell. There is a also a scheduled speech from the RBA Governor Philip Lowe, this follows on from the minutes of yesterday.

Thursday June 21 – today is the busiest day from the pounds point of view with the Bank of England interest rate meeting and accompanying monetary policy summary. This is released at 12:45. It is widely expected that interest rates will remain on hold, however any clues as to when Mark Carney and the central bank may next act is what will determine the pounds direction. Any hints as to a rate hike in the coming months or before the year and I would look for the pound to have a strong day. The afternoon session will see the release of US initial jobless claims at 13:30.

Friday June 22 – to finish the week the morning is dominated with European data with Euro Zone markit manufacturing PMI at 09:00. At 12:00 the Bank of England releases its quarterly bulletin. This provides commentary on UK monetary policy operations. Friday afternoon is light for UK data but look out for US markit manufacturing, services and composite PMI (Purchasing Managers Index) all scheduled for release at 14:45.

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