While it all may be quiet on the Brexit front, economic data is coming back into focus. This means the British Pound exchange rates could be susceptible to weaker UK data and soften if the Eurozone or US produce impressive figures. However, the Pound is also waiting for any sign of Brexit developments, and headlines could create significant Sterling exchange rate movement.
Will Chinese Growth Help Struggling Eurozone and Boost Euro Exchange Rate?
This week, Chinese data has impressed, showing a reversal in the downward trend seen at the end of 2018, and adds to recent signs that global economic growth is experiencing a turnaround. Germany’s manufacturing slowdown has been primarily attributed to China, and so many hope that a pickup in the nation will help Germany too. Yesterday, German ZEW Surveys showed that at present, economic sentiment is remaining low. However, a positive came when it was revealed that expectations for future growth picked up markedly.
Pound Euro (GBP/EUR), Pound US Dollar (GBP/USD) Exchange Rate Forecast
Here’s what to look for in the rest of the week for Pound to Euro (GBP/EUR) and Pound to US Dollar (GBP/USD) exchange rate movement…
Thursday begins with the latest Markit French, German, and Eurozone Manufacturing and Services Purchasing Managers’ Indexes (PMI) for April. Any figures below 50.0 denote contraction, whereas above shows expansion.
The Bank of England will also release it’s latest Credit Conditions and Bank Liabilities Surveys which may offer the Pound some opportunity for movement. UK Retail Sales for March will also make an appearance. At present, economists expect a -0.3% reading on the month excluding auto fuel, but a +4.0% figure for the year up from February’s 3.8%.
It’ll be a busy day in the US too with the release of the March Advance Retail Sales stats, as well as the Philadelphia Fed Business Outlook, and Markit’s US Manufacturing, Services, and Composite PMI’s.
Friday will close the week with the March US Housing Starts and Building Permits stats.