Pound (GBP)
After struggling for direction last week, the Pound (GBP) may be supported this week by the release of the UK’s latest PMI figures. December’s finalised figures are expected to confirm the UK’s private sector closed last year on a positive note, which may help to ease recession fears.
Euro (EUR)
The Euro (EUR) may receive a shot in the arm this week with the publication of the Eurozone’s consumer price index. December’s preliminary CPI figures are forecast to report a sharp acceleration of inflation. This is likely to weaken European Central Bank (ECB) interest rate cut expectations and could bolster the Euro.
US Dollar (USD)
The US Dollar (USD) is likely to face notable headwinds this week as the latest US non farm payroll report is forecast to show that US employment growth slumped in December. In the meantime, USD investors will also be keeping an eye out for the minutes from the Federal Reserve’s latest policy meeting. A broadly dovish consensus amongst Fed policymakers may reinforce March rate cut bets and trigger a sharp plunge in the US Dollar.
Australian Dollar (AUD)
In the absence of any notable domestic data, movement in the Australian Dollar (AUD) is likely to be tied to market risk appetite this week. Could an optimistic start to the year help to lift the ‘Aussie’?
South African Rand (ZAR)
While bullish risk-flows may reflect positively on the South African Rand (ZAR) this week, will the return of loadshedding measures by state utility Eskom limit the Rand’s upside potential?
Canadian Dollar (CAD)
Canda’s latest unemployment figures could pull the Canadian Dollar (CAD) lower this week as this is likely to stoke Bank of Canada (BoC) rate cut speculation. However, a solid recovery in oil prices could help to shore up support for the commodity-linked ‘Loonie’.
New Zealand Dollar (NZD)
With domestic data thin on the ground this week, the New Zealand Dollar (NZD) is likely to be highly sensitive to market risk sentiment. Could an upbeat mood help to propel the ‘Kiwi’ higher?