The Pound to US Dollar (GBP/USD) exchange rate had an interesting time in the market this week, given Brexit developments and economic data. The week ahead has a number of events which could impact the Pound to US Dollar (GBP/USD) and Sterling to Indian Rupee (GBP/INR) exchange rates.
GBP/USD Exchange Rate Forecast W/C 4th February
The US is playing catchup with a lot of data, given the partial Federal Government shutdown which delayed a number of ecostats making their way onto the market. Monday 4th February kicks off the week with the US Personal Core Expenditure stats for December, which are expected to show a 0.2% growth on the month, and remain steady at 1.9% on the year.
Markit’s UK January Construction Purchasing Managers’ Index (PMI) will also be out, and a figure lower than last month’s 52.8 could put some pressure on Sterling. The final December US Durable Goods Orders figure will also come to light.
Tuesday will reveal the UK’s Services PMI and Composite PMI as well as the US ISM Non-Manufacturing/Services Composite stat. However, Thursday is likely to be one of the most interesting days for the British Pound to US Dollar (GBP/USD) exchange rate, with the release of the Bank of England’s (BoE) latest interest rate decision and Inflation Report. Any clues on the central bank’s timeline for monetary policy could prove influential for the Pound. However, with Brexit and so much ongoing political uncertainty, it’s unlikely the central bank will be anything but cautious in the near-term.
The US will reveal it’s weekly Initial Jobless Claims and Continuing Claims stats on Thursday too. Meanwhile, Friday will close with week with the US Baker Hughes Rig Count number.
Other Influencers for the Pound Dollar (GBP/USD) Exchange Rate
Alongside economic data, Brexit and US political developments will also play their parts in giving the Pound and US Dollar some direction. Investors will be watching for progress in the US-China trade war tensions, while also keeping an eye on the prospect of another government shutdown. Britain’s volatile politics could also cause some rapid and sharp GBP/USD exchange rate movement.
Pound to Indian Rupee (GBP/INR) Exchange Rate Forecast
Meanwhile, the Pound to Indian Rupee (GBP/INR) exchange rate could be in for some movement on Tuesday when the Indian Services PMI comes out. Thursday could be an exciting day too, not only because of the BoE interest rate decision, but also because the Reserve Bank of India (RBI) is due to make its own interest rate announcement. Friday will close the week with Indian Foreign Exchange Reserves stats.