The Pound Sterling to Euro (GBP/EUR), Pound Sterling to Canadian Dollar (GBP/CAD) and Pound Sterling to US Dollar (GBP/USD) exchange rates are all expected to have an interesting week with several key pieces of data scheduled for release.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast
The Pound Sterling to Euro (GBP/EUR) exchange rate will experience its most influential days of trading on account of data on Tuesday with the release of the UK’s Gross Domestic Product (GDP) report.
However, the Euro is likely to fluctuate significantly on Wednesday with the release of Germany’s Consumer Price Index (CPI). Thursday is scheduled to be another full-on day for the Euro to Pound Sterling (EUR/GBP) exchange rate with the release of the German Unemployment Change, Unemployment Rate and the Eurozone Consumer Price Index (CPI).
The Pound Sterling to Euro (GBP/EUR) exchange rate could be under increasing pressure in coming weeks with the general election looming.
Investors and economists have suggested that a massive political shakeup could cause major Pound depreciation while a hung parliament could lead to weeks of negotiations that may pressure the Pound Sterling exchange rate lower.
Additionally, if further speculation arises on whether or not Greece may default on its next IMF loan repayment, the Euro to Pound Sterling (EUR/GBP) exchange rate could sink.
Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast
The Pound Sterling to US Dollar (GBP/USD) exchange rate is in for an exciting day on Wednesday when the Federal Open Market Committee (FOMC) announces its latest interest rate decision.
Although the Federal Reserve isn’t expected to hike interest rates anytime soon, the US Dollar exchange rate could be in for major swings on account of speculation regarding whether the Fed or the Bank of England (BoE) will be first to increase borrowing costs since the onset of the global financial crisis.
US data is pretty hefty in the week ahead also with at least one piece of significance out every day. Tuesday’s US Consumer Confidence figure is forecast to climb from 101.3 to 102.5 in April, while Wednesday’s US Gross Domestic Product (GDP) and Personal Consumption stats are expected to have a massive influence on the US Dollar’s exchange rate.
US Personal Consumption Expenditure will be out on Thursday while the US ISM Manufacturing stat will be out on Friday.
Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate Forecast
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate could be in for a relatively quiet time at the start of the week with a lack of North American data due to hit the market.
Meanwhile, Thursday’s Canadian Gross Domestic Product (GDP) figure could cause some major ‘Loonie’ exchange rate movement, while Friday’s Canadian Manufacturing Purchasing Managers Index (PMI) could offer some moderate movement.
Additionally, the price of oil could impact the CAD/GBP exchange rate.
The week ahead is likely to hold much speculation regarding the Federal Reserve, Bank of Canada (BOC) and Bank of England interest rates and the Pound Sterling to Canadian Dollar (GBP/CAD), Pound Sterling to US Dollar (GBP/USD) and Pound Sterling to Euro (GBP/EUR) exchange rates will fluctuate accordingly.