Pound (GBP)
Notable UK economic data is in short supply this week. This may leave the pound (GBP) to take its cues from wider market trends. If markets remain optimistic that the UK will weather US President Donald Trump’s reciprocal tariffs or even secure an exemption, Sterling may rise.
Euro (EUR)
This week sees the publication of the Eurozone’s latest consumer price index. If inflation slowed as forecast in March, it may increase the odds of the European Central Bank (ECB) cutting interest rates again in April and drag the euro (EUR) lower.
US dollar (USD)
In addition to a swathe of high-impact US economic releases, the implementation of President Donald Trump’s reciprocal tariffs will keep USD investors on their toes this week. If Trump sticks to his guns, we could see safe-haven flows and US recession fears pull the US dollar (USD) in two opposite directions.
Australian dollar (AUD)
While global trade uncertainty may act as a headwind for the Australian dollar (AUD) this week, the ‘Aussie’ may draw support from the Reserve Bank of Australia (RBA) if it strikes a hawkish note when it concludes its latest policy meeting on Tuesday.
South African rand (ZAR)
Domestic politics may provide a boost for the South African rand (ZAR) this week amid reports the ruling coalition government may finally reach a deal to pass a new national budget and end weeks of infighting.
Canadian dollar (CAD)
The Canadian dollar (CAD) looks set to face an uphill battle this week. In addition to the risks posed by Trump’s new tariffs, the ‘loonie’ is also likely to be pressured by Canada’s latest jobs report, which is expected to report an uptick in unemployment in March.
New Zealand dollar (NZD)
In the absence of any domestic data of note, the New Zealand dollar (NZD) is likely to track market risk appetite this week. This could leave the ‘kiwi’ vulnerable to losses in the face of fresh global trade uncertainty.