Pound (GBP)
The Pound (GBP) may struggle to find direction this week amid a lull in notable UK economic releases. However, a speech by one of the Bank of England’s (BoE) most hawkish members, Catherine L Mann, could provide a boost in the second half of the week.
Euro (EUR)
The publication of Germany’s latest industrial data may act as the main catalyst of movement for the Euro (EUR) this week. EUR exchange rates are likely to weaken if factory orders and industrial production disappoint in December.
US Dollar (USD)
Following on from last week’s Federal Reserve interest rate decision and payroll figures, the US Dollar (USD) may remain bid as investors continue to price out expectations for a March rate cut. Reinforcing these gains at the start of this week may be the latest ISM services PMI, which is forecast to have risen in January.
Australian Dollar (AUD)
The Reserve Bank of Australia’s (RBA) first interest rate decision of 2024 could infuse some volatility into the Australian Dollar (AUD) this week. No policy changes are expected this month, but could some dovish comments stoke speculation that rates will be cut by May?
South African Rand (ZAR)
President Cyril Ramaphosa’s State of the Nation Address will be closely watched by ZAR investors this week. His pre-election promises could provide a boost to the South African Rand (ZAR) if markets believe they will help to get the country’s economy back on track.
Canadian Dollar (CAD)
The Canadian Dollar (CAD) may face headwinds this week as Canada’s latest jobs data is expected to report that domestic unemployment ticked higher in January, placing more pressure on the Bank of Canada (BoC) to start cutting interest rates.
New Zealand Dollar (NZD)
The New Zealand Dollar (NZD) is likely to come under pressure this week, as domestic employment figures are expected to report unemployment jumped from 3.9% to 4.3% in the last quarter of 2023.