Euro (EUR) Exchange Rate Forecast
The Euro might have been performing well against the Pound this week, but that was about it in terms of positive news for the common currency. An unexpected decline in the level of industrial production in the currency bloc weighed on the Euro, as did shockingly bad ZEW economic sentiment survey’s for the Eurozone and its largest economies. This was followed up on Thursday by concerning growth reports for France, Germany and the Eurozone as a whole. It now looks increasingly likely that the European Central Bank will need to bring in some form of quantitative easing style stimulus in the near future, and demand for the Euro has fallen accordingly. Next week the Euro (EUR) exchange rate could move in response to the following reports; Eurozone trade figures, German Producer Price figures, Eurozone Construction Output and Markit Services, Manufacturing and Composite PMI for the Eurozone, Germany and France. Further signs of economic weakness in the 18-nation currency bloc are likely to undermine demand for the Euro even more.
US Dollar (USD) Exchange Rate Forecast
After a run of better-than-forecast US data, the world’s largest economy finally suffered a setback in the form of a static Advance Retail Sales report. While sales had been expected to show a modest increase of 0.2% they actually stagnated and the US Dollar eased lower against several of its major currency counterparts as a result. Additional US Dollar losses were incurred after US initial jobless claims were shown to have increased unexpectedly. In the coming week investors with an interest in the US Dollar should pay particular attention to the following US reports; Building Permits, Housing Starts, Consumer Price Index, Existing Home Sales and Manufacturing PMI. The minutes from the latest Federal Open Market Committee meeting are also likely to cause movement in the US Dollar exchange rate.
New Zealand (NZD) Exchange Rate Forecast
Over the past week the New Zealand Dollar has gained impressively against the Pound and advanced on peers like the Euro and US Dollar. Although the ‘Kiwi’ came under pressure at the beginning of the week as a result of disappointing house price figures for New Zealand, the currency was able to exert itself as the days continued and New Zealand’s Performance of Manufacturing Index and Retail Sales excluding inflation both delivered positive results. Retail sales ex inflation were shown to have increased by 1.2% in the second quarter on a quarter-on-quarter basis. Those economic reports from New Zealand to be aware of over the coming week include; New Zealand’s Performance of Services Index, Producer Price Index and Credit Card Spending figures. News from Australia and China will also have an impact on the New Zealand Dollar (NZD) exchange rate.
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