Pound (GBP)
UK economic releases are in short supply this week, which may leave the pound (GBP) struggling to attract support. However, hawkish Bank of England (BoE) expectations may help to limit the currency’s downside risks.
Euro (EUR)
The Eurozone’s latest consumer price index will be in the spotlight this week. If the preliminary inflation figures for November report another uptick, it could dampen expectations for ECB rate cuts and provide support for the euro (EUR).
US dollar (USD)
This week sees the release of the latest core PCE price index. An increase in the Federal Reserve’s preferred inflation gauge could lead to a reduction in US rate cut bets, offering fresh support for the US dollar (USD).
Australian dollar (AUD)
The Australian dollar (AUD) could climb this week with the publication of Australia’s own CPI figures. An expected uptick in inflation last month could reinforce bets that the Reserve Bank of Australia (RBA) will delay cutting interest rates.
South African rand (ZAR)
In the absence of any notable domestic data, movement in the South African rand (ZAR) is likely to be tied to market risk dynamics this week. If sentiment remains broadly downbeat, this could pull the emerging-market currency lower.
Canadian dollar (CAD)
Canada will publish its latest quarterly GDP figures later this week. These are expected to report a slowing of growth in the third quarter and are likely to drag on the Canadian dollar (CAD) towards the end of the week.
New Zealand dollar (NZD)
The New Zealand dollar (NZD) looks poised to slump this week as the Reserve Bank of New Zealand (RBNZ) is widely expected to deliver an interest rate cut when the bank concludes its latest policy meeting on Wednesday.