Foreign Exchange Rates for the Pound Sterling, US Dollar, Euro, Australian Dollar, and the Canadian Dollar can all be partially predicted if you know what to look for. Want more exchange rate forecasts?
Pound Sterling
Be on the lookout for the the latest edition of the Rightmove house price index, which can give indications for whether or not the Sterling is going to be moving positive or negative in the future. FXwords has a complete list of UK economic indicators.
US Dollar
Michigan Confidence survey seeks to understand US consumer attitudes and expectations about the US economy by gauging how consumers feel the economic environment will change. The survey’s Index of Consumer Expectations is an official component of the US Index of Leading Economic Indicators.
Euro
The OECD Leading Indicator measures the economic outlook for the Euro-zone as a whole. According to FXwords, it is “one of the most respected international economic research institutions, the Organization for Economic Co-operation and Development (OECD) releases the Leading Indicator for early signals of economic expansion or slowdown. It takes a number of indicators known to precede changes in growth to serve as a short term forecast of Euro-zone developments. The OECD Leading Economic Index focuses less on how much economies change, but rather on the direction they are moving.”
The Pound Australian Dollar
Australia’s Westpac Consumer Confidence index, officially called the Consumer Sentiment Index, measures the level of consumer confidence and is an average of five indexes measuring different aspects of consumer fiscal health. According to FXwords, “This is one of the few indicators that are entirely expectation based. Households report their views on current buying conditions for household items and where they feel are the “wisest” places to invest savings. Views on future political policy (taxes, politicians, government) and economic conditions (wages, inflation, unemployment) are also surveyed.”
The Pound Canadian Dollar
Canada’s Ivey Purchasing Managers Index (PMI) is a monthly measure of the change in purchases by corporate executives. A headline value above 50 indicates an increase in purchases from the previous month and a value below 50 indicates a decrease, which can be a good economic indicator. FXwords has a complete list of Canadian economic indicators.
Risk Warning: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.