Pound (GBP)
With GBP economic data in short supply this week, UK election speculation may act as the main catalyst of movement for the pound (GBP). Could we see any surprises in the last full week of campaigning that throw open the race and spark volatility in Sterling?
Euro (EUR)
The euro (EUR) could be in for a rocky ride this week as EUR investors brace for the first round of the French parliamentary election this weekend. Expect to see the single currency come under pressure as we near polling day on the expectation that the far-right will lead the vote.
US dollar (USD)
The focus for USD investors this week will be the latest core PCE price index. The Federal Reserve’s preferred indicator for inflation may weigh on the US dollar (USD) this week as an expected cooling of inflation last month may stoke Fed interest rate cut bets.
Australian dollar (AUD)
Australia’s latest consumer price index will likely be the primary catalyst of movement for the Australian dollar (AUD) this week. If inflation continued to accelerate in May it’s likely to buoy Reserve Bank of Australia (RBA) rate hike bets and propel the ‘Aussie’ higher.
South African rand (ZAR)
The South African rand’s (ZAR) recent bullish run may be tested this week as President Cyril Ramaphosa unveils his new cabinet. If investors feel the pro-business Democratic Alliance (DA) isn’t well represented the rand could stumble.
Canadian dollar (CAD)
Canada will also publish its latest CPI figures this week. Economists forecast domestic inflation will have slowed in May, potentially weakening the Canadian dollar (CAD) if it stokes Bank of Canada (BoC) rate cut bets.
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. Could a cautious mood pull the ‘kiwi’ lower?