The Pound to Canadian Dollar (GBP/CAD) and Pound to Euro (GBP/EUR) exchange rates will have plenty of opportunity to move in the week ahead, with the Bank of England’s (BoE) interest rate decision, influential Canadian labour market data, and revealing Eurozone stats.
Pound to Euro (GBP/EUR) Exchange Rate Forecast
This week it was revealed that Italy, perhaps somewhat predictably, had entered a technical recession. The data which showed a -0.2% contraction in Italian economic growth on the quarter raised questions over the populist government’s anti-austerity agenda. Investors will be keeping a close eye on Eurozone economic data out in the week ahead, which may indicate the European Central Bank (ECB) needs to reintroduce some kind of stimulus measure.
Monday will see the Eurozone Sentix Investor Confidence stat released, followed by the Eurozone Producer Price Index. The Markit UK Construction Purchasing Managers’ Index (PMI) will also make an appearance, and it’s hoped the January figure won’t slip below the 52.8 seen in December, and give the Pound a reason to weaken.
Tuesday will continue with the British Retail Consortium’s Like-For-Like Sales stat, as well as a host of Markit’s Italian, French, German, and Eurozone PMIs for January. The UK Markit Services PMI and Composite PMI will also be revealed, ahead of the moderately influential Eurozone Retail Sales figure.
Wednesday will continue on with the German Factory Orders numbers and German Construction PMI, ahead of Thursday’s German Industrial Production data. The European Central Bank will also publish its Economic Bulletin on Thursday, while the Bank of England (BoE) makes its February interest rate decision and releases its latest Inflation Report.
Friday closes the week with the German Trade Balance stats.
Pound to Canadian Dollar (GBP/CAD) Exchange Rate Forecast
The Pound to Canadian Dollar could be influenced this week by oil prices, US-China trade tensions, UK political developments, and some influential labour market stats. Wednesday will see the December Canadian Building Permits data print. However, the most interesting day for the Canadian Dollar is expected to be Friday when the Canadian Housing Starts, Unemployment Rate, Hourly Wage Rate, and Net Change in Employment stats reach markets. The data could have a significant impact on the way the Canadian Dollar trades.