Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast
The Pound Sterling to US Dollar (GBP/USD) exchange rate could be in for an interesting time in the week ahead with influential UK and US data mingled in amongst the UK general election on Thursday.
By far the most influential event for the US Dollar next week will be the US Unemployment Rate and Change in Non-Farm Payrolls figures out on Friday. An upbeat ecostat could see investors price in a Federal Reserve rate hike in the near future—an event that could see the US Dollar to Pound Sterling (USD/GBP) exchange rate rally.
The UK’s latest Trade Balance figures will emerge in the wake of the general election result on Friday; therefore the Pound may move more significantly on the political result than on any data.
UK markets are closed on Monday for the bank holiday, but Tuesday will see the release of Markit’s Construction Purchasing Managers Index (PMI) which could offer some moderate movement in the Pound to US Dollar (GBP/USD) exchange rate.
Additionally, Tuesday will see the release of the US Trade Balance number as well as the highly influential US ISM Non-Manufacturing Composite. Wednesday will continue with the US ADP Employment Change figure which is forecast to come in at 190K in April after March’s 189K. The ADP Employment Change figure is often used as an indicator for Friday’s Non-Farm Payrolls on Friday.
Furthermore, if investors are impressed by US data, any whiff of a Federal Reserve interest rate hike could cause a US Dollar to Pound Sterling (USD/GBP) rally.
Pound Sterling to Canadian Dollar (GBP/CAD) Exchange Rate Forecast
The Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate could be in for significant movement toward the end of the week after the result for the UK general election is announced as well as the Canadian Unemployment Rate and Net Change in Employment figure due for release.
Wednesday’s Canadian Ivey Purchasing Managers Index will be of moderate influence to the ‘Loonie’ exchange rate. Thursday could also offer the Canadian Dollar (CAD) exchange rate the opportunity to move with the release of the Canadian Building Permits data.
The UK’s New Car Registrations stat will be out on Thursday, but the Pound Sterling exchange rate is likely to be preoccupied with UK general election trading influences taking place that day.
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast
The Pound Sterling to Euro (GBP/EUR) exchange rate is forecast for some significant swings in the week ahead with highly influential data releases coupled with ongoing Greek negotiations as well as the UK general election.
Monday will see the release of the Eurozone’s Sentix Investor Confidence index, while Tuesday will heat up a little more with the European Commission releasing its economic forecasts. The release of the economic forecast could see the Euro to Pound Sterling (EUR/GBP) exchange rate rally after renewed growth taking place in the Eurozone recently since the European Central Bank (ECB) began quantitative easing (QE) in March.
Eurozone Retail Sales are due out on Wednesday, followed by German Factory Orders and Markit’s German Retail PMI on Thursday. Friday will finish up the week for Eurozone data with the release of the German Industrial Production and German Trade Balance figures.
Additionally, any central bank statements from the Bank of Canada (BOC), European Central Bank (ECB), Federal Reserve and the Bank of England (BoE) are forecast to cause major Pound Sterling to Canadian Dollar, Pound Sterling to US Dollar (GBP/USD) and Pound Sterling to Euro (GBP/EUR) exchange rate movements.
The Euro exchange rate could also be in for some significant movement if any developments between Greece and its creditors occur. With the possibility of a Greek default a very real threat at the moment, the Euro to Pound Sterling (EUR/GBP) exchange rate could have an extremely interesting week ahead.