Pound (GBP)
GBP investors will be kept on their toes by a slew of high-impact UK economic releases this week. Data including the UK’s latest inflation and quarterly GDP readings could trigger some dramatic swings in the pound (GBP), particularly if they weaken the case for further interest rate cuts from the Bank of England (BoE).
Euro (EUR)
Potentially dragging the euro (EUR) lower this week will be Germany’s latest ZEW economic sentiment index. Morale in the Eurozone’s largest economy is expected to have softened this month amid fears that Germany could slip into a recession this year.
US dollar (USD)
The spotlight for USD investors this week will undoubtedly be on the latest US consumer price index. Economists forecast US inflation continued to cool in July, confirmation of which is likely to increase calls for a bumper interest rate cut from the Federal Reserve next month and pull the US dollar (USD) lower.
Australian dollar (AUD)
The Australian dollar (AUD) may face resistance later this week, with the publication of Australia’s latest jobs report. An expected slowdown in employment growth last month could pull the ‘Aussie’ lower as it would undermine the Reserve Bank of Australia’s (RBA) suggestion it could raise interest rates again in the future.
South African rand (ZAR)
South Africa will publish its latest unemployment figures this week. Economists predict that the number of unemployment individuals will have remained close to a record high in the second quarter, likely leaving the South African rand (ZAR) vulnerable to losses.
Canadian dollar (CAD)
Canadian economic data is in short supply this week. As a result, movement in the Canadian dollar (CAD) may be tied to oil price dynamics, with the ‘loonie’ poised to climb if crude prices continue to recover from last week’s plunge.
New Zealand dollar (NZD)
The Reserve Bank of New Zealand (RBNZ) is scheduled to deliver its latest interest rate decision this week. While the RBNZ is expected to leave interest rates on hold this month, any dovish forward guidance could pressure the New Zealand dollar (NZD).