Pound (GBP)
Movement in the pound (GBP) this week may be linked to the Labour party conference. GBP investors will be hoping that the Labour leadership will be able to offer a more optimistic outlook for the economy, after weeks of doom and gloom since taking office.
Euro (EUR)
The euro (EUR) is off to a poor start this week in response to dismal Eurozone PMIs. These losses may be extended through the first half of the session if Germany reports another deterioration in business morale.
US dollar (USD)
Following on from last week’s bruising, the US dollar (USD) could face an uphill battle this week, with the release of the latest core PCE price index. If the Federal Reserve’s preferred indicator for inflation cools, it’s likely to bolster bets for another 50bps interest rate cut from the bank in November.
Australian dollar (AUD)
The Reserve Bank of Australia’s (RBA) latest interest rate decision will no doubt act as the main catalyst for movement in the Australian dollar (AUD) this week. If the RBA continues to strike a hawkish note, it’s likely to propel the ‘Aussie’ higher.
South African rand (ZAR)
In the absence of any high-impact domestic data, movement in the South African Rand (ZAR) is likely to be tied to market risk dynamics. If a positive mood prevails, the rand may extend its recent rally.
Canadian dollar (CAD)
Canada’s latest GDP figures may act as a headwind for the Canadian dollar (CAD) this week if they show that growth remained anaemic through July and August.
New Zealand dollar (NZD)
As domestic data is in short supply this week, the direction of the New Zealand dollar (NZD) is likely to be dictated by market risk appetite. Will an upbeat mood help to underpin the ‘kiwi’?