Currency converter look for direction in data filled week
A slew of economic data, heavily loaded towards the back end of the week, might not be enough to give traders a clear indication of the direction and timing of monetary policy in the major economies.
Despite the huge volume of data this week, the lack of influence of any one particular piece of news could see continued uncertainty on the exchanges leading into the first week of April.
Direction next week will be influenced by a few key events, including the Bank of England’s Interest Rate announcement and the US Non Farm Payrolls.
Uncertainty about future interest rate movements in the world’s largest economy continues to surround the US Dollar. It is hard to remember a time in recent monetary policy history when the view has been more divided.
A lack of hawkish rhetoric (no mention of ‘additional firming’) at the latest Fed statement was one reason for the recent Dollar sell off and the Pound and the Euro rose towards the highs of recent ranges against the Greenback last week.
However, the US economic variables are not entirely balanced at the moment – signs of an economic slowdown have not really fed through into an easing of price pressures.
Subsequently those economists calling for Fed cuts are matched in number by those wanting to remain cautious on inflation. US New home sales for February (Today; 3pm) and US Consumer Confidence for March (Tuesday; 3pm) are the most likely market movers at the start of the week.
Prospects for another interest rate increase in the UK remain strong even if the timing of such a move is still up for debate. The major gauges (such as Consumer Price Inflation) used by the Bank of England’s 9-strong committee have been and gone.
The Nationwide house prices survey, due for release on Friday, will be watched to see if there are any early signs of a housing market slowdown in the UK. However, the MPC are unlikely to act until definite longer-term trends emerge in this sector.
The major news in the Eurozone will come, as usual, from Germany. The IFO Business climate survey is due for release on Tuesday at 9am and Unemployment for March is out on Thursday morning.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
Despite the huge volume of data this week, the lack of influence of any one particular piece of news could see continued uncertainty on the exchanges leading into the first week of April.
Direction next week will be influenced by a few key events, including the Bank of England’s Interest Rate announcement and the US Non Farm Payrolls.
Uncertainty about future interest rate movements in the world’s largest economy continues to surround the US Dollar. It is hard to remember a time in recent monetary policy history when the view has been more divided.
A lack of hawkish rhetoric (no mention of ‘additional firming’) at the latest Fed statement was one reason for the recent Dollar sell off and the Pound and the Euro rose towards the highs of recent ranges against the Greenback last week.
However, the US economic variables are not entirely balanced at the moment – signs of an economic slowdown have not really fed through into an easing of price pressures.
Subsequently those economists calling for Fed cuts are matched in number by those wanting to remain cautious on inflation. US New home sales for February (Today; 3pm) and US Consumer Confidence for March (Tuesday; 3pm) are the most likely market movers at the start of the week.
Prospects for another interest rate increase in the UK remain strong even if the timing of such a move is still up for debate. The major gauges (such as Consumer Price Inflation) used by the Bank of England’s 9-strong committee have been and gone.
The Nationwide house prices survey, due for release on Friday, will be watched to see if there are any early signs of a housing market slowdown in the UK. However, the MPC are unlikely to act until definite longer-term trends emerge in this sector.
The major news in the Eurozone will come, as usual, from Germany. The IFO Business climate survey is due for release on Tuesday at 9am and Unemployment for March is out on Thursday morning.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
Labels: Bank of England, currency converter, interest rates
posted by Wise Money @ 7:21 PM
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