UK political uncertainty continues to be the main driver for GBP exchange rates, with the Pound struggling to make any gains while the future of the Brexit process remains uncertain. Until we see a clear direction from whoever the new Prime Minister will be, we’re unlikely to see Sterling rise in value.
Today, I’ll outline other things that could affect the Pound in the coming week. The economic data releases for the week ahead are outlined below. If you need to exchange currency and would like to discuss the market with an expert and see what rate we can offer you, get in touch by clicking here.
This week’s economic data releases for the week ahead that could affect exchange rates
Monday 24th June – There aren’t any significant releases from the UK today. We have already had some releases from Germany that have strengthened the Euro and pulled GBP/EUR a little lower. Later today we have Trade Balance figures from New Zealand that could move the GBP/NZD rate.
Tuesday 25th June – Another quiet day from the UK side. There are speeches by members of the European Central Bank (ECB) that could weaken the Euro if they hint at further monetery stimulus in the Eurozone. Most data today is from the USA – House prices, consumer confidence, Manufacturing, and speeches by the FED, so it could be a volatile day for Pound/Dollar.
Wednesday 26th June – The first major release from the UK comes today, when we see the latest Bank of England (BoE) inflation report along with a speech by BoE governor Mark Carney. There is also a measure of UK Mortgage approvals at 09:30am. Elsewhere, we have an interest rate decision from New Zealand, and manufacturing numbers from the United States.
Thursday 27th June – From the EU today we will see the latest Industrial Confidence, Consumer Confidence and Services Sentiment figures, all of which could impact the Euro. Hermany also releases inflation figures, and as the EU’s largest economy, this too could affect the single currency. It’s also a busy day in the USA with Jobless claims, GDP numbers, inflation figures, and manufacturing numbers.
Friday 28th June – Today is probably the most important one of the week for Sterling, as we’ll see the latest House Price data, along with the UK’s GDP numbers. We expect a quarterly reading of 0.2% – any higher will strengthen the Pound, while a lower than expected figure would weaken Sterling. Euroland releases it’s inflation numbers, and we round off the week with Canadial GDP numbers.
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