Pound (GBP)
A speech by Keir Starmer on Tuesday could act as a headwind for the pound (GBP) this week as the UK Prime Minister is expected to warn that the country’s recovery will see the people of Britain face tough times in the months to come.
Euro (EUR)
The publication of the Eurozone’s preliminary CPI figures for August will be in the spotlight this week. If inflation falls as rapidly as expected it may stoke European Central Bank (ECB) interest rate cut bets and weaken the euro (EUR).
US dollar (USD)
Following on from Federal Reserve Chair Jerome Powell’s dovish speech on Friday, the Fed will remain in focus this week with the publication of the bank’s preferred indicator for inflation, the core PCE price index. An uptick in July’s index may temper Fed interest rate cut speculation and lift the US dollar (USD).
Australian dollar (AUD)
The Australian dollar (AUD) may face some resistance this week as Australia publishes its monthly consumer price index on Wednesday. Economists predict inflation will have cooled last month, which could drag on the ‘Aussie’ if it undermines bets the Reserve Bank of Australia (RBA) could hike rates again.
South African rand (ZAR)
Movement in the South African rand (ZAR) is likely to be tied to market risk dynamics through the first half of this week. Subsequent movement may then be driven by South Africa’s latest PPI figures, with the rand potentially weakening if producer prices softened in July.
Canadian dollar (CAD)
Canada latest quarterly GDP figures will likely act as the main catalyst of movement for the Canadian dollar (CAD) this week. Expect to see the ‘loonie’ strengthen later in the week if growth accelerated as forecast in the second quarter.
New Zealand dollar (NZD)
New Zealand’s latest business confidence index may buoy the New Zealand dollar (NZD) this week if August’s survey reports that sentiment remains broadly upbeat.