This week seems much busier than in terms of economic data with the following due out that may have an effect on exchange rates:
Overnight we have the RBA (Reserve Bank of Australia) Interest rate decision and although no major changes are expected regarding interest rates speculators and investors alike will still be focused on any comments in the RBA rate statement which may give us some insight on future economic policy over in Australia and may lead to a volatile Australian Dollar overnight.
Tomorrow morning brings Swiss inflation data at 08:15am with expectations for CPI to be at 0% this does bring in a slight risk of deflation which may then lead to the SNB having to step in and combat inflation issues a little further down the line much like the European Central bank have had to recently. This may be negative for the Swiss Franc.
Later on tomorrow morning at 09:30am we have industrial and manufacturing production figures for the U.K which can always be a good market mover. Expectations are for a slight improvement in these figures so we may have a positive morning for the Pound as long as long as figures are released in line with analysts predictions.
Wednesday is a little quieter however later on Wednesday evening we have the FOMC minutes from their last interest rate decision over in America and with U.S data having an effect on global attitude to risk all major currencies may be in for a volatile evening. I would be surprised not to hear some sort of indication on the interest rate hikes and when they now may happen so be sure to keep an eye on exchange rates at around 18:00pm Wednesday evening.
Late night Wednesday/Early morning Thursday we have a flurry of employment data from Australia and expectations are for fairly poor figures to be released, all in all this could round off what may be a potentially poor week for the Australian Dollar.
At midday on Thursday we have the Bank of England interest rate decision and although it would be a great surprise to see an interest rate hike in the U.K it only takes another two members of the Bank of England to decide in favour of a rate hike and we may see a surprise rate hike. A rise in interest rates is genreally seen as positive for a currency and a cut negative so if this were to happen you could expect a boost in the value of the Pound. Personally, I would be surprised to see a rate hike but you can never rule it out.
If we do not see one then the Bank of England minutes from this meeting will be released in roughly two weeks time and they will no doubt attract quite a bit of attention to see how voting went.
Later in the day Mario Draghi speaks at 16:00pm and we may see further news on he plans to attack deflation in the coming months so expect Euro volatility during Draghi’s comments.
Friday is not too busy to round off the week, the two key releases will be trade balance figures for the U.K at 09:30am where we expect to see a small improvement and later on in the afternoon we have Canadian employment figures with little change expected.
All in all I expect a busy week and hope to have plenty to write about as the week goes on. If you have a currency exchange requirement either soon or in the future and you want to make sure you not only get an award winning rate of exchange but also customer service to match then feel free to contact me (Daniel Wright) the creator of this site personally.
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