Pound (GBP)
The pound (GBP) may face an uphill battle this week. In the absence of any domestic data, Sterling sentiment may be influenced by UK political uncertainty. This comes amid rumours that a poor performance by the Conservatives in this week’s local elections could see Prime Minister Rishi Sunak announce a general election in order to see off any leadership challenges.
Euro (EUR)
The euro (EUR) may receive a shot in the arm in the first half of this week’s session, with the publication of some high-impact data. Will an expected uptick in Eurozone GDP and signs of sticky inflation in the bloc help to dampen European Central Bank (ECB) interest rate speculation and support the single currency?
US dollar (USD)
All eyes this week will be on the Federal Reserve’s latest interest rate decision. No policy changes are expected from the bank, but the US dollar (USD) may jump if Fed Chair Jerome Powell strikes a more hawkish tone in light of recent data. Also influencing USD will be the latest US payroll figures. Will another robust employment report help to underpin any gains for the ‘greenback’?
Australian dollar (AUD)
Market risk dynamics may act as the main catalyst of movement in the Australian dollar (AUD) this week, but the latest domestic trade figures may offer some support to the ‘Aussie’ towards the end of the session if March’s data reports a rebound in export growth.
South African rand (ZAR)
In the absence of any domestic data of note, the South African rand (ZAR) could struggle to find support this week, particularly in the face of major external events such as the Fed’s interest rate decision.
Canadian dollar (CAD)
Canada’s latest GDP data may dictate the direction of the Canadian dollar (CAD) this week. Will signs of slowing economic growth act as a headwind for the ‘loonie’?
New Zealand dollar (NZD)
The New Zealand dollar (NZD) may come under pressure this week. In addition to the potential volatility that follows the Fed’s interest rate decision, a forecast rise in New Zealand’s latest unemployment figures may also drag on the ‘kiwi’.