Pound (GBP)
Impactful UK economic data is in short supply this week. This will likely leave Sterling sensitive to wider market trends, with the pound (GBP) potentially weakening if sentiment deteriorates in the lead-up to Trump’s tariff deadline on Friday.
Euro (EUR)
The euro (EUR) is off to a positive start this week following the announcement of an EU-US trade deal. However, these gains may be tested later in the week as the Eurozone’s latest GDP figures are expected to report growth in the bloc stalled in the second quarter.
US dollar (USD)
It’s set to be a busy week for USD investors, with the US scheduled to publish its latest GDP and payroll figures, and the Federal Reserve due to deliver its latest interest rate decision on Wednesday. No policy changes are expected from the Fed this month, but its forward guidance could trigger some volatility in the US dollar (USD) depending on whether it helps to strengthen or weaken bets for a September rate cut.
Australian dollar (AUD)
Looking ahead to this week, Australia’s latest quarterly inflation print may set expectations for future Reserve Bank of Australia (RBA) interest rate decisions. An expected softening of inflation in the second quarter is likely to stoke rate cut bets and drag on the Australian dollar (AUD).
South African rand (ZAR)
The South African rand (ZAR) may trade erratically this week, with the threat of US tariffs as well as a potential rate cut from the South African Reserve Bank (SARB) set to infuse volatility into the currency.
Canadian dollar (CAD)
The Bank of Canada’s (BoC) latest interest rate decision will be the primary focus for CAD investors this week. No policy changes are expected, but the Canadian dollar (CAD) may come under pressure if the bank leaves the door open for future rate cuts.
New Zealand dollar (NZD)
In the absence of any notable domestic data, movement in the New Zealand dollar (NZD) will be tied to market risk dynamics this week, with trade optimism potentially helping to underpin demand for the ‘kiwi’.