Pound (GBP)
The pound (GBP) could face headwinds later this week with the release of the UK’s latest GDP figures. Economists forecast UK economic growth will have slowed in February. Will this place more pressure on the Bank of England (BoE) to start cutting interest rates and sap Sterling sentiment?
Euro (EUR)
The European Central Bank’s (ECB) latest interest rate decision will be centre stage this week. Expect to see the euro (EUR) slump if the ECB signals its plans to start cutting interest rates in June, with an even larger collapse being triggered if the bank surprises with a rate cut this month.
US dollar (USD)
The latest US consumer price index could propel the US dollar (USD) higher this week. March’s CPI figures are forecast to report an acceleration of US inflation which, coupled with last week’s bumper US payroll report, could encourage the Federal Reserve to keep interest rates on hold for longer.
Australian dollar (AUD)
The Australian dollar (AUD) may come under pressure in the first half of this week, if the latest Australian consumer and business confidence figures report another deterioration in sentiment.
South African rand (ZAR)
In the continued absence of any notable domestic data, movement in the South African rand (ZAR) may remain tied to market risk dynamics this week. Will a stronger US dollar sap market risk appetite and dent ZAR exchange rates?
Canadian dollar (CAD)
The Bank of Canada (BoC) will deliver its latest interest rate decision this week. The Canadian dollar (CAD) is likely to come under significant selling pressure if the BoC outlines plans to start loosening its monetary policy in the near term.
New Zealand dollar (NZD)
The Reserve Bank of New Zealand (RBNZ) is also set to conclude its latest policy meeting this week. Recent rhetoric from the RBNZ has struck a dovish chord; will a similar tone in the wake of this week’s meeting weaken the New Zealand dollar (NZD)?