Pound (GBP)
In addition to Labour’s first moves in office, movement in the pound (GBP) may also be influenced by the UK’s latest GDP figures this week. Will an acceleration of growth in May help to strengthen Sterling sentiment?
Euro (EUR)
The euro (EUR) may remain volatile this week, following the second round of the French parliamentary election on Sunday. While the far-right was successfully blocked from power, EUR investors fear that the resulting hung parliament will lead to political deadlock within the Eurozone’s second-largest economy.
US dollar (USD)
The spotlight this week is likely to be on the latest US consumer price index. Economists forecast the CPI figures will report US inflation continued to cool in June. This could weigh heavily on the US dollar (USD) as it’s likely to bolster bets the Federal Reserve will begin cutting interest rates from September.
Australian dollar (AUD)
The Australian dollar (AUD) may face resistance this week, as economists are predicting drops in both domestic consumer and business confidence.
South African rand (ZAR)
In the absence of any notable domestic data, movement in the South African rand (ZAR) is likely to be linked to market risk dynamics this week. Will further weakness in the US dollar help to bolster risk appetite and underpin the emerging market currency?
Canadian dollar (CAD)
Canadian economic data is also in short supply this week. As a result, movement in the commodity-linked Canadian dollar (CAD) may be tied to oil prices, with the ‘loonie’ vulnerable to losses if oil prices continue to slide.
New Zealand dollar (NZD)
The Reserve Bank of New Zealand’s (RBNZ) latest interest rate decision will be the primary focus for NZD investors this week. While no policy changes are expected, the New Zealand dollar (NZD) is likely to strengthen if the RBNZ maintains a broadly hawkish outlook.