What will happen to the GBP/USD over the next week?

It was another quite Monday in terms of data releases which have resulted in the pound/dollar cross sitting around $1.58 mark. It seems the currennt issues in Greece and Eurozone have now been priced into the market, with the Greek elections on the 17^th June now the key date.

In the UK all eyes will again be focused on the Bank of England as their minutes from the last meeting will be released on Wednesday and the report will give us a clear indication to how the policymakers voted in favour of more quantitative easing. Only last week BoE policy maker Adam Posen said he been a bit premature in changing his stance regarding further QE. Mr Posen had recently backed away from his call for further asset buying, which lent huge support to sterling’s value.

As I have mentioned in my previous posts continued talk of QE and investors favouring the safe haven status of the U.S dollar has seen rates steadily drop over the last three weeks. A run of poor data from the UK will add to the calls for the Bank of England to look at another round of monetary stimulus and we could see rates head back towards the $1.52 mark witnessed back in January 2012.

Over the next few days there are a number of key data releases that could have a say into cables fortunes.

Tuesday - we will see UK mortgage approvals, Consumer Price Index, Housing Prices, Retail Sales and Public Sector borrowing. This will give us a good barometer of the UK economy so could affect exchange rates, In the U.S we will see Home Sales and Manufacturing data in the afternoon.

Wednesday – As already mentioned we will see the Bank of England release its minutes from their last meeting, News from the BoE last week saw the pound drop in value so investors will be watching closely. In the U.S we will see Home Sales Measures.

Thursday – Late morning will see further Retail Sales data released in the UK along with GBP figures and business investment, stateside we have Jobless Claims and Durable Goods orders.

Over the course of the week I will keep you posted on how the data affects the GBP/USD exchange rate, but if you are thinking of buying or selling dollars in the next couple of months the best thing you can do during this uncertainty is to contact me for a free consultation. You can do that by clicking here to send me a direct email or by completing the contact form on the homepage of the blog.