Traders are eagerly awaiting the release of the German Consumer Price Index report that is expected to come out at 12:00 UTC on 28 June 2013. Analysts note that as Germany represents one of the largest and most influential economies in the Eurozone, the release of this report is likely to have a significant effect on the remainder of the EU member states.
Should the report indicate an increased trend of inflation in the German powerhouse, analysts assess that an increase in interest rates can be readily expected, thus affecting the Euro’s place in its trading pairings against the GBP, USD and others.
US to Release NFP Report on State of Employment
The highly influential Non-Farm Payroll report is set to be released at 12:30 UTC on 5 July 2013 by the US Department of Labor, hopefully providing traders a clearer picture on the current health of the American economy.
Analysts note that the Change in NFP report follows the recent set of statements by Fed Chairman Ben S. Bernake that the FOMC intends to reduce its involvement in stimulus measures due to improvements in their economic forecast over the next few quarters. Should the NFP prove to back up these projections by pointing to a steady improvement in the jobs market to coincide with the Fed’s projections, analysts believe that it will help to significantly strengthen the USD.
Bank of England Declares Confidence in Financial System to be Fragile
The long awaited Financial Stability Report that was released yesterday 26 June 2013 by the BoE appears to paint a picture of continued concerns regarding the current state of the global economy.
The bi annual report has indicated that interested rates are unlikely to rise in the near future and calls on authorities to step up their activities in assessing vulnerabilities and risks to the financial institutions.
Analysts assess that this report points to a risk averse UK financial system that is wary of fully re-entering the European and global markets at this time until they are more confident that improved regulatory practices and safeguards are in place. As such, traders may expect to see increased volatility in pairings of the GBP against other currencies for the near to medium terms.