The Pound closed out last week having made gains against the US Dollar and against the Euro in the foreign exchange market. The GBP/EUR exchange rate moved up from Monday’s open at 1.1965, to close the week at 1.1986. The GBP/USD exchange rate gained across the course of the week, starting from Monday’s open at 1.5842, trading up to a new week high of 1.6038, before finishing the week around the 1.5985 level. The Pound also gained against the Australian dollar and against the New Zealand Dollar in the foreign exchange market last week. The GBP/NZD exchange rate picked up from 1.9414, to trade higher at 1.9483 by the close of the week. The GBP/AUD exchange rate opened up from 1.5174 and finished the week higher at 1.5413.
The week ahead will see some key economic data released from the UK. The first significant data to look out for will be released Tuesday with the Purchasing Manager Index (Mar) due at 09:30 GMT, where economists are expecting a decline from 54.3 to 53.4. During the week on Thursday we have Industrial Production year-on-year (Feb) due at 09:30 GMT, followed by the Bank of England Rate Decision and Asset Purchase Target at 12:00 GMT and NIESR Gross Domestic Product Estimate (Mar) due at 15:00 GMT.
This morning we have seen the release of Purchasing Manager Index for Manufacturing (Mar) come in better than expected at 52.1 vs. 50.7 and up from prior month of 51.5. We have no more scheduled data from the UK today.
The Euro gained against the US Dollar, but declined against the Pound throughout last week in the currency exchange market. The EUR/USD rate picked up from 1.3235 at Monday’s open, to trade down to a week low of 1.3190 before trading back to 1.3334 by the close of the European trading session on Friday.
The main market focus for the week ahead in Europe will begin on Tuesday, with the release of Euro-zone Producer Price Index year-on-year (Feb) month-on-month due at 10:00 GMT. Economists are expecting a decline from 3.7% to 3.5% for the year-on-year figure and a decline from 0.7% to 0.5% for the month-on-month figure. Later in the week on Wednesday, we will look out for the release of Euro-zone Retail Sales year-on-year (Feb) due at 10:00 GMT, followed by German Factory Orders n.s.a due at 11:00 GMT and European Central Bank Rate Decision due at 12:45 GMT. To end the week we have German Industrial Production due at 11:00 GMT on Thursday.
This morning we have seen Euro-zone Unemployment Rate (Feb) come in line with expectations at 10.8% and up from the prior release of 10.7%. Also Italian Purchasing Manager Index Manufacturing (Mar) showed slight improvement coming in at 47.9 vs. 47.6 and up from the prior release of 47.8.
We don’t have much significant data from the Euro-zone today, but will see the release of Italian New Car Registrations (Mar) due at 17:00 GMT and Italian Budget Balance due at 18:00 GMT.
The US Dollar declined across the board especially against the Euro and the Pound in the currency markets last weeks. This week’s key events to look out for will be today’s ISM Manufacturing due at 15:00 GMT where economists are expecting an increase from 52.4 to 53.0. On Tuesday we have the release of US Factory Orders (Feb) due at 15:00, followed by the Fed’s FOMC Meeting which is scheduled after UK trading hours at 19:00 GMT. Later in the week on Wednesday we will look out for the ADP Employment Change (Mar) due at 13:15 GMT, followed by ISM Non-Manufacturing Composite (Mar) due at 15:00 GMT. Finally to end the week we have the release of Change in Non-Farm Payrolls (Mar) and Unemployment Rate due at 13:30 GMT.
This Daily Market Update is brought to you by The Market Team @ KBRFX – Exchange Rate, Currency Conversion & Foreign Currency Transfer specialists.
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