Pound (GBP)
The pound (GBP) will likely trade without a clear direction ahead of the Bank of England’s (BoE) impending interest rate decision on Thursday. While the central bank is widely expected to enact a sixth consecutive interest rate hold, investors will be eager to assess the central bank’s forward guidance. In addition to this, markets await the UK’s latest GDP print, with economists forecasting 0.4% growth in the first quarter of 2024. Should the data print as forecast, signs of renewed economic momentum in Britain could see Sterling garner investor support.
Euro (EUR)
Germany’s latest industrial data will likely be the focus for euro (EUR) investors this week. Production in the industry-heavy economy is forecast to have slumped by 1.1% in March, which may serve to hamper the common currency mid-week, in the wake of slumping domestic factory orders.
US dollar (USD)
The US dollar (USD) may be primarily driven by several speeches from Federal Reserve policymakers this week in the absence of high impact macroeconomic releases. Following Fed Chair Jerome Powell’s unexpectedly tepid approach towards monetary policy last week, any further dovish rhetoric may deter investor interest in the ‘greenback’.
Australian dollar (AUD)
A sharp rise in Reserve Bank of Australia (RBA) interest rate cut bets following the central bank’s dovish tilt may undermine the Australian dollar (AUD) through the latter half of the week. Elsewhere, upbeat Chinese trade data may offer the ‘Aussie’ some support due to AUD’s status as a proxy currency for the Chinese economy.
South African rand (ZAR)
Amid a lack of market moving releases, South African rand (ZAR) investors may look towards the latest manufacturing production data. With output forecast to have risen by 0.7% in March, ZAR could edge higher. Otherwise, the acutely risk-sensitive currency may be driven primarily by market risk dynamics.
New Zealand dollar (NZD)
New Zealand’s BusinessNZ manufacturing PMI may drive ‘kiwi’ movement on Thursday. Forecast to rebound from its lowest level of the year in April. Signs of easing contraction in NZ’s manufacturing sector could see the New Zealand dollar (NZD) post some modest gains.
Canadian dollar (CAD)
Canada’s latest jobs data will likely be the focus of Canadian dollar (CAD) investors this week. Analysts expect to see unemployment edge higher to 6.2% in April, surpassing a two-year high. Signs of a loosening labour market could see ‘loonie’ exchange rates tumble as the week nears an end.