Pound (GBP)
The Bank of England’s (BoE) will deliver its latest interest rate decision on Thursday. While there is a general consensus that the bank will deliver a 25bps rate cut this month, uncertainty over the UK’s inflation outlook means it is far from guaranteed. This could result in some notable volatility in the pound (GBP) this week.
Euro (EUR)
This week’s session opens with the publication of the Eurozone’s latest consumer price index. If January’s preliminary CPI figures report another acceleration in inflation, it might help to temper ECB rate cut bets and lift the euro (EUR).
US dollar (USD)
In addition to the fallout from Donald Trump’s first round of tariffs, the US dollar (USD) is likely to be driven by the latest US non-farm payroll figures this week. Expect to see USD exchange rates strengthen if January’s figures report another healthy expansion in the US labour market.
Australian dollar (AUD)
Risk-off flows and a narrowing of Australia’s trade surplus in December could see the Australian dollar (AUD) struggle through this week’s session.
South African rand (ZAR)
Movement in the South African rand (ZAR) is likely to be tied to market sentiment this week amid the absence of any notable domestic data. Trump’s tariffs, coupled with his threat to cut off aid to South Africa could see the rand face significant resistance in the coming days.
Canadian dollar (CAD)
The Canadian dollar (CAD) may come under pressure later this week as Canada’s latest jobs figures are expected to report unemployment ticked higher again in January.
New Zealand dollar (NZD)
With domestic data in short supply, movement in the New Zealand Dollar (NZD) is likely to be driven by wider market movements this week.