Pound (GBP)
The UK’s preliminary PMIs for August will likely be the main focus for GBP investors this week. These are expected to report an acceleration of growth in the UK’s all-important services sector, which may help to lift the pound (GBP) later in the session.
Euro (EUR)
The Eurozone will also publish its latest PMI figures this week. Expect to see the euro (EUR) strengthen if August’s preliminary figures report activity in the bloc’s private sector rose this month.
US dollar (USD)
All eyes will be on Federal Reserve Chair Jerome Powell this week as he delivers his keynote speech at the bank’s annual Jackson Hole Symposium. Powell is expected to use his speech to set the tone for a September interest rate cut and his remarks may trigger significant volatility in the US dollar (USD).
Australian dollar (AUD)
The Australian Dollar (AUD) may firm in the first half of this week with the publication of the minutes from the Reserve Bank of Australia’s (RBA) latest policy meeting. Assuming the minutes highlight that policymakers remain open to another interest rate hike.
South African rand (ZAR)
South Africa will publish its latest consumer price index this week. Economists predict inflation in the emerging market economy will have cooled again in July, potentially stoking South African Reserve Bank (SARB) rate cut bets and dragging on the South African rand (ZAR).
Canadian dollar (CAD)
Canada will also release its latest CPI figures this week. If inflation remained below the Bank of Canada’s (BoC) target rate last month it could pull the Canadian dollar lower.
New Zealand dollar (NZD)
The New Zealand dollar (NZD) may garner support later this week with the publication of New Zealand’s quarterly retail sales print as economists forecast sales growth will have remained positive for the second consecutive quarter in Q2.