With a very busy economic calendar to look forward to, we can expect considerable GBP, EUR, AUD, USD exchange rate movement over the week ahead. Here we look at the main events likely to impact the currency market.
BoE Interest Rate Decision May Impact Pound Sterling (GBP) Exchange Rate this Week, Will Rates Rise in 2015?
Next week the Pound Sterling to Euro (GBP/EUR) and Pound Sterling to US Dollar (GBP/USD) exchange rates are likely to fluctuate in response to the UK’s Industrial/Manufacturing Production numbers, the National Institute of Economic and Social Research’s GDP estimate for June, UK trade data and the nation’s Construction Output report.
However, investors will also be taking an interest in the Bank of England’s policy meeting and hoping that the members of the Monetary Policy Committee (MPC) are becoming divided on the subject of when to increase interest rates.
Although we won’t know how the vote on rate adjustments went until the minutes from the gathering are published, hopes that this week’s strong UK Services PMI will be enough to turn some policymakers hawkish may be enough to support the Pound.
Grexit Bets Depend on Referendum Result, Euro (EUR) Exchange Rate Volatility Forecast
The Euro to US Dollar (EUR/USD) and Euro to Pound Sterling (EUR/GBP) currency pairs could be in for a very rocky few days of trading after the Greek populace cast their votes in Sunday’s referendum.
A vote in favour of austerity could reopen the lines of communication between Greece and its creditors and lend the Euro support in the process.
However, a ‘No’ vote has the potential to hasten the country’s exit from the currency bloc and drive the Euro to fresh lows against peers like the Pound and US Dollar.
Australian Dollar (AUD) Exchange Rate Shifts Predicted with Reserve Bank of Australia (RBA) Interest Rate Decision Ahead
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate closed out this week trending in the region of a fresh multi-year low as concerning ecostats from China and below-forecast domestic retail sales figures reduced demand for the ‘Aussie’.
The Australian Dollar to US Dollar (AUD/USD) currency pair also slumped and came within touching distance of a six-year low.
Next week’s Reserve Bank of Australia (RBA) interest rate decision is likely to have a major impact on ‘Aussie’ trading.
Any indications that the RBA intends to revise borrowing costs this year could drive the Australian Dollar lower still while surprisingly hawkish minutes would support the South Pacific asset.
Current GBP, EUR, USD, AUD Exchange Rates
The Pound Sterling to Euro (GBP/EUR) exchange rate was trending in the region of 1.4072, the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending in the region of 2.0793 and the Pound Sterling to US Dollar (GBP/USD) exchange rate was trending in the region of 1.5632
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