Pound (GBP)
The UK’s latest jobs report may drag on the pound (GBP) in the first half of this week, as signs of a cooling labour market or slowing wage growth could stoke bets on a Bank of England (BoE) interest rate cut in July. Also of note to GBP investors will be the expected publication of Labour’s election manifesto. As the presumed government in waiting, its fiscal plans will be closely watched by markets.
Euro (EUR)
While notable Eurozone data is in short supply this week, the fallout from the recent European elections could infuse volatility into the euro (EUR) in the coming days. Strong gains by far-right parties and the announcement of snap elections in France are currently unnerving many EUR investors.
US dollar (USD)
The Federal Reserve’s latest interest rate decision will be in the spotlight this week. While no policy changes are expected at this meeting, markets appear to be betting on the Fed striking a more hawkish tone in light of recent US data. Coupled with another strong domestic inflation reading, could this propel the US dollar (USD) sharply higher this week?
Australian dollar (AUD)
Domestic unemployment figures will likely act as the main catalyst for the Australian dollar (AUD) this week. Will the ‘Aussie’ firm if Thursday’s data reports the jobless rate fell in May?
South African rand (ZAR)
Movement in the South African rand (ZAR) is likely to remain tied to domestic political developments this week. So far markets have reacted with cautious optimism regarding the African National Congress (ANC) announcement it will seek to form a government of national unity, could this lend support to the rand this week?
Canadian dollar (CAD)
In the absence of any notable domestic data, movement in the commodity-linked Canadian dollar (CAD) is likely to be driven by oil prices. Will rallying crude prices help to prop up demand for the ‘loonie’?
New Zealand dollar (NZD)
NZD data is also in short supply this week, potentially tying movement in the New Zealand dollar (NZD) to market risk dynamics. Will a cautious mood pressure the ‘kiwi’?