Pound (GBP)
UK economic data remains thin on the ground this week, with the UK’s finalised services PMI likely to have a negligible impact on the pound (GBP), barring any major revisions. As a result, will greater focus be placed on the UK’s upcoming election, with policy pledges from Labour or the Conservatives potentially infusing some volatility into Sterling?
Euro (EUR)
All eyes will be on the European Central Bank (ECB) this week as it delivers its latest interest rate decision. A rate cut is largely priced in so any subsequent movement in the euro (EUR) is likely to be driven by the bank’s forward guidance. If the bank appears reluctant to pursue another cut in July, the single currency may strengthen.
US dollar (USD)
There will be several high-impact US data releases driving movement in the US dollar (USD) this week. The most impactful of which is likely to be the latest non farm payroll print. Additional signs that the US labour market is slowing could see the ‘greenback’ close the week on the back foot.
Australian dollar (AUD)
Likely acting as the main catalyst of movement in the Australian dollar (AUD) this week will be Australia’s latest GDP figures. Expect to see the ‘Aussie’ falter if the recent trend of softening growth continued in the first quarter of 2024.
South African rand (ZAR)
The South African rand (ZAR) could struggle to find support this week, amid the ongoing political uncertainty which followed last week’s general election. However, one potential source of strength may be South Africa’s latest GDP figures, which are forecast to report an acceleration of growth in Q1.
Canadian dollar (CAD)
The Bank of Canada’s (BoC) latest interest rate decision could pull the Canadian dollar (CAD) lower this week as the BoC is widely expected to cut interest rates for the first time in four years.
New Zealand dollar (NZD)
In the absence of any notable domestic data, movement in the New Zealand dollar (NZD) is likely to be tied to market risk dynamics this week. Will a cautious mood pressure the ‘kiwi’?