The Pound Sterling to Euro (GBP/EUR) exchange rate is forecast to experience volatility next week as a wealth of economic data releases are due for release in both the UK and Eurozone. Worries over Greece are likely to intensify if no deal is made between Athens and its creditors before a debt repayment due on June 5.
The Pound Sterling to Euro (GBP/EUR) exchange rate touched a weekly high of 1.4168 and a weekly low of 1.3891 in the week of May 25 to 29
Next week sees the release of a number of Purchasing Manager Index (PMI) reports, which will give a clearer indication on the performance of both the UK and Eurozone economies.
On Monday, Manufacturing PMIs for several European nations and the overall Eurozone will be released. Activity in the sector is forecast to have improved in May thanks to improvement in France and Spain. UK manufacturing data is also due for release. Also of interest for the Euro will be the latest German inflation data.
Tuesday will see the release of German unemployment, UK Construction PMI and Eurozone inflation data. Economists are forecasting the jobless rate in Germany to fall further to a new record low. Year-on-year Eurozone inflation meanwhile is predicted to come in at 0.1% a dip from the 0.6% rise seen in the previous month. A stronger figure will boost the Euro, as it will further validate the European Central Bank’s decision to introduce its quantitative easing programme.
ECB and BoE interest rate decisions to influence GBP/EUR Exchange Rate
Wednesday sees the publication of composite and service sector PMI data out of the Eurozone and Germany. The UK meanwhile will release the latest service sector PMI. The Pound may weaken as economists are forecasting that activity in the UK’s most dominant sector softened in May. Also of interest will be Eurozone retail sales and the ECB’s latest interest decision.
On Thursday, it will be the Bank of England’s (BoE) turn to announce its interest rate decision. Policy makers are expected to leave interest rates unchanged at 0.5% and maintain the monthly quantitative easing programme. The main piece of data of interest for the Euro will be Greek unemployment data. The nation’s jobless rate is forecast to rise to 26.3%.
Friday is D-Day for Greece as a debt repayment to the International Monetary Fund (IMF) is due. If no deal has been reached by this point then there is a very real chance that Greece will default and the Euro will tumble as investors fret over the implications of such an event. The Euro will also be affected by the release of Eurozone GDP data.
The post Pound Sterling to Euro Exchange Rate Forecast: Data Packed Week and Greece Deadline to Create Volatility for GBP/EUR appeared first on Future Currency Forecast.