Daily Archives: June 25, 2012
Sterling set for a tough week? Pound Sterling Forecast against a basket of currencies inclusive of Euro, Dollar, Canadian Dollar, Australian Dollar, New Zealand Dollar, Swiss Franc and South African Rand
The Pound may be set for a tough week this week with numerous data releases out including our Public Sector Net Borrowing figures, Mortgage Approval Data and GDP (Gross Domestic Product) figures.
Today is fairly quiet on the data front however don’t be surprised if the Europeans throw a spanner into the works as quite honestly they could release absolutely anything at absolutely any time and this could affect all major currencies as it will effect investors attitude to risk and as regular readers will be aware investor’s attitude to risk can lead to quite a bit of market volatility. Should we see more bad news from Europe then you would imagine attitude to risk will suffer and the Dollar will benefit being a safe haven whilst the riskier currencies may weaken.
Should all stay quiet on the European front then the Dollar may weaken back a little and the riskier currencies such as AUD, NZD and ZAR could continue their push back against Sterling. Of course any major economic releases that are much better or worse than expected may counter act this.
For the Pound this week the action starts Tomorrow morning with Public Sector Net Borrowing, this data is essentially an indication as to how much new debt the U.K Government has obtained over the course of the month, a negative figure suggests that the U.K holds surplus, which may be seen as positive for the U.K and indeed the Pound. Of course if borrowing figures are up then the Pound may well take a further hit.
Wednesday brings us the U.K mortgage approval data which suggests how well, or badly the U.K housing market is performing, a lower figure is once again seen as a negative yet a rise in mortgage approvals can be seen as a positive, especially in the current climate!
Thursday has the potential to be the most volatile of days as we see GDP (Gross Domestic Product) figures for the U.K which have been fairly poor of late and expectations are that the figure may not have changed by much. Personally I see a fairly flat week for the Pound with the potential to have a couple of fairly poor days should data releases be worse than expected.
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