Pound (GBP)
The publication of the UK’s latest PMIs will likely act as the main catalyst of movement in the Pound (GBP) this week. Expect to see Sterling strengthen later in the week if February’s preliminary figures report that the UK’s vital service sector continues to expand.
Euro (EUR)
The Euro (EUR) may face headwinds later this week as the latest Eurozone PMIs are forecast to show that activity in the bloc’s private sector continued to contract this month. The publication of the minutes from the European Central Bank’s (ECB) latest policy meeting could pile more pressure on EUR if there are signs that policymakers are seriously discussing potential interest rate cuts.
US Dollar (USD)
The minutes from the Federal Reserve’s January policy meeting will be in the spotlight this week. The Fed strongly pushed back against rate cut bets following last month’s meeting. If this is echoed in the minutes, the US Dollar (USD) is likely to surge.
Australian Dollar (AUD)
The Reserve Bank of Australia (RBA) will also publish the minutes from its latest policy meeting this week. Expect these to bolster the Australian Dollar (AUD) if they highlight that policymakers remain open to another interest rate hike.
South African Rand (ZAR)
The South African Rand (ZAR) may see some volatility this week as finance minister Enoch Godongwana is set to unveil his annual budget. Given South Africa’s current economic woes, Godongwana will have his work cut out for him to appease markets.
Canadian Dollar (CAD)
The Canadian Dollar (CAD) may face headwinds this week as Canada’s latest consumer price index is expected to report inflation slowed 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 trade figures are expected to report that a fall in exports led the nation’s trade deficit to widen last month.