Pound Sterling (GBP) Currency Market Data Watch for Economic Week Commencing 13th June

June 13, 2016 - Written by Toni Johnson

STORY LINK Pound Sterling (GBP) Currency Market Data Watch for Economic Week Commencing 13th June

Sterling has been an unstable option against peers of late, owing to the latest EU Referendum polls putting the chances of a 'Brexit' as high.

Federal Reserve Policy Announcement to Dominate Trader Focus

This week’s session is packed with tier one data releases from across the globe. The centrepiece comes in the USA during the middle part of the week, but there is no shortage of key statistics from all four corners of the world between now and Friday’s market close. Our leading data analyst takes a look at the likely market-moving releases over the next five trading days below –

There is no question that Wednesday evening’s US Federal Reserve monetary policy announcement is the stand-out risk event between now and the weekend. Futures markets are pricing-in a minimal chance that the Fed’s policymakers will opt for another interest rate increase this month – the implied percentage likelihood is pegged at only 1.9%.

However, the tone of the commentary which accompanies the Fed’s announcement will be dissected by investors across the world for clues on when the Fed will be hiking rates. At the time of writing, futures market participants price-in a 63.2% likelihood that US rates will still be at 0.50% after the Fed’s September meeting. With this set-up, any suggestion that a rate increase might come sooner in Fed Chair Janet Yellen’s rhetoric will send the US Dollar (currency : USD) higher.

Global Dairy Trade Auction to Provoke NZD Exchange Rate Volatility

The week contains many other highlights; Southern Hemisphere investors will be eyeing Wednesday’s GlobalDairyTrade auction results to provide support for the New Zealand Dollar (currency : NZD).

Meanwhile, holders of the Australian Dollar will be keeping a close watch on the latest Australian labour market statistics, due out during the early hours of Wednesday morning. The Dollar from Down Under is likely to record gains if, as anticipated, the May Australian Employment Change figures point to another month of healthy job creation in Oz.

Thursday afternoon brings the Bank of England’s latest policy announcement, (a ‘no-change’ decision is almost guaranteed), and also May’s US Consumer Price Index inflation numbers. An annualised print of above April’s 1.1% will be needed to support the US Dollar.

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TAGS: American Dollar Forecasts New Zealand Dollar Forecasts Pound Sterlin Forecasts