Pound (GBP)
The Bank of England’s (BoE) latest interest rate decision will no doubt act as the main catalyst of movement in the Pound (GBP) this week. No policy changes are expected from the BoE on Thursday, but the bank could bolster Sterling sentiment if it warns that investors are becoming overzealous when pricing in interest rate cuts.
Euro (EUR)
The Euro (EUR) is likely to come under pressure in the first half of this week as the Eurozone’s latest GDP figures are expected to confirm the bloc slipped into a recession in the second half of 2023. However, could a robust inflation print help to revive EUR exchange rates towards the end of the session?
US Dollar (USD)
The Federal Reserve’s interest rate decision and latest US payroll figures will keep USD investors on their toes this week. The Fed could inspire significant volatility in the US Dollar (USD) depending on whether it pushes back against speculation of a March rate cut, while an expected fall in payrolls could weigh on USD at the end of the week.
Australian Dollar (AUD)
The Australian Dollar (AUD) may face headwinds this week, with the publication of Australia’s latest consumer price index. With domestic inflation forecast to have slowed in the last quarter of 2023, this may place more pressure on the Reserve Bank of Australia (RBA) to start loosening monetary policy.
South African Rand (ZAR)
A sparse data calendar is likely to see the South African Rand (ZAR) driven primarily by risk appetite this week. If investors remain cautious ahead of some key data releases in the US and Europe, ZAR exchange rates may weaken.
Canadian Dollar (CAD)
The Canadian Dollar (CAD) may trade erratically this week, as a lull in domestic data is likely to see movement in the commodity-linked currency dictated by oil price dynamics.
New Zealand Dollar (NZD)
NZD data is also thin on the ground this week, potentially leaving movement in the New Zealand Dollar (NZD) to be tied to market risk sentiment this week. Will a cautious mood pull the ‘Kiwi’ lower?