Pound (GBP)
The UK’s latest consumer price index will be a key focus this week. Bank of England (BoE) interest rate cut expectations are likely to weaken if inflation rose as sharply as forecast in October. This, in turn, is likely to propel the pound (GBP) higher.
Euro (EUR)
The release of the Eurozone’s latest PMIs will be in the spotlight for EUR investors this week. If November’s preliminary figures point to continued weakness in the bloc’s private sector, the euro (EUR) is likely to tumble.
US dollar (USD)
Notable US economic data is in short supply next week. This may see ‘Trump trade’ continue to dictate the direction of the US dollar (USD) and potentially maintain the currency’s bullish trajectory.
Australian dollar (AUD)
The minutes from the Reserve Bank of Australia’s (RBA) latest policy meeting will be closely watched by AUD investors this week. If these reiterate the bank’s desire to maintain its restrictive monetary policy, the Australian dollar (AUD) is poised to strengthen.
South African rand (ZAR)
Movement in the South African rand (ZAR) this week is likely to be primarily driven by the South African Reserve Bank’s (SARB) latest interest rate decision. If the bank cuts rates as forecast and signals more are to come, the rand is likely to slide.
Canadian dollar (CAD)
The Canadian dollar (CAD) may receive a boost this week with the publication of Canada’s latest CPI figures, as an acceleration of inflation last month is likely to temper Bank of Canada (BoC) rate cut bets.
New Zealand dollar (NZD)
In the absence of any notable domestic data, movement in the New Zealand dollar (NZD) is likely to be tied to market risk dynamics. Expect to see the ‘kiwi’ slide if a risk-off mood prevails.