Our regular readers will be aware of the busy week for Sterling exchange rates up ahead, with the data beginning tomorrow morning.
Although there are data releases each day at 9.30 am the general consensus is that this Thursday will be the busiest, with many financial commentators referring to Thursday as ‘Super Thursday’.
The reason for the build-up and expectations is the high volume of data due out that day, with the Bank of England’s Minutes speech likely to be the key potential market mover.
There is no expectation of a rate hike after inflation pressures appear to have subsided recently, but investors and those concerned with the value of the Pound will look to the speeches for indications of whether there will be future monetary policy changes.
With the governor of the BoE, Mark Carney speaking shortly after the interest rate decision there are many opportunities for Sterling movement, and I think that any talk of there being no need for a rate hike for a long period of time will result in a fall for the Pounds value.
After such a large drop recently, particularly against the Euro I wouldn’t be surprised to see the BoE talk up the UK economy after the currency has come under increasing pressure recently, especially after some poor data releases recently.
Aside from Thursday’s data releases at lunchtime there will be data releases at 9.30am tomorrow, on Wednesday and on Thursday morning. These releases will cover sentiment within the Manufacturing, Industrial and Services sectors so expect any major deviations from the expected figures to result in movement for Sterling exchange rates.