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Pound Sterling Forecast – The week ahead… The end of the week may be highly volatile!
As always the first week of the month tends to be quite a busy one and this week certainly is no exception.
Tonight we see a speech from Ben Bernanke (Head of the Federal Reserve in the States) which could give indications as to the next approach we may see from the States regarding economic conditions.
On top of this we have the Reserve Bank of Australia interest rate decision, once again no change in rates is expected however comments on economic policy or on how the economy over in Australia is performing may lead to a highly volatile night for the Australian Dollar which has struggled a little of late, be sure to keep chjecking our sister site http://www.australiandollarforecast.com/ for the very latest on the AUD.
We have a fairly quiet day in general on the cards for Stering tomorrow unless any surprises pop up, with just Halifax house price data to consider and some inflationary data for the Euro.
Trade balance data for Australia is out overnight which again means those with an interest in Australian Dollars need to make sure they either have protection against adverse market movements or a limit order in place to take advantage of an overnight spike – Feel free to contact me [email protected] if you wish to know how these contract types work, there is no cost to place them and they could potentially save or make you thousands of Pounds.
European retail Sales kick off Wednesday morning which may prove a tricky day for the Euro as traders speculate on what may come from the European Central Bank interest rate decision and press conference on Thursday afternoon.
In my opinion Thursday is the big day for most with a currency requirement this week – We have three big releases inclusive of the Bank of England interest rate decision at 12:00 (no change in rates expected but any mention of QE may dent the Pound) European Central Bank Interest rate decision at 12:45pm (again no rate change expected however the press conference shortly after always throws up a lot of market volatility) and finally we have the minutes from the last rate decision in the States at 19:00pm. Confirmation on how the QE3 decision came about and future plans to tackle economic problems may lead to all currencies moving around a lot overnight – once again a limit order or stop loss may be a sensible approach.
Friday we have Non Farm Payroll data at 13:30pm which is a data release important for those with a Dollar interest and indeed interest in the ‘riskier’ currencies such as the AUD, NZD and ZAR. Non-Farm Payroll datais essentially the number of people in Non-agricultural employment over in the States and is a key indication as to how their economy is performing.
This release can cause quite a lot of volatility because predictions are made in advance and these can be wildly out. The market moves on rumours and predictions as well as fact, and should the figure come out quite a way from initial predictions the market does correct itself rather swiftly.The reason this effects the AUD, NZD and ZAR and pretty much most majors is because as I am sure you can imagine it will affect attitude to risk and will lead to rapid movements of large amounts of money globally in what generally presents an interesting week to say the least without any surprises popping up during the course of it.
If you have an upcoming transfer to carry out and want to get the best exchange rates along with great customer service and knowledge of the markets then email me directly [email protected] I welcome all enquiries for bank to bank transfers however i’m afraid I cannot help with cash transactions or speculation.
2012-10-01 14:40:48
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