Pound (GBP)
Alongside ongoing budget uncertainty, the pound (GBP) will also be guided by the UK’s upcoming consumer price index. Should inflation ease in October, it would likely reinforce expectations of a December Bank of England (BoE) rate cut and maintain the downward pressure on Sterling.
Euro (EUR)
EUR investors will be focused on the Eurozone’s latest PMI releases this week. If November’s flash estimates show another pickup in private sector activity, the euro (EUR) may find fresh support.
US dollar (USD)
The reopening of the US government clears the way for a wave of delayed federal data, with September’s non-farm payrolls in particular under scrutiny. Signs of weaker labour market conditions could drag the US dollar (USD) lower if they prompt markets to reprice Federal Reserve interest rate expectations in a more dovish direction.
Australian dollar (AUD)
AUD traders will be paying close attention to the minutes from the Reserve Bank of Australia’s (RBA) most recent meeting. Any reaffirmation of the RBA’s commitment to keeping policy tight could help lift the Australian dollar (AUD) this week.
South African rand (ZAR)
The South African rand (ZAR) may be driven by the South African Reserve Bank’s (SARB) latest rate announcement. Although the SARB is expected to hold rates steady, investors will be scrutinising its commentary for clues on how the newly adjusted inflation target may shape medium-term policy.
Canadian dollar (CAD)
Canada’s latest CPI reading could give the Canadian dollar (CAD) a boost early this week. Another firm inflation print would likely reduce expectations for imminent Bank of Canada (BoC) rate cuts.
New Zealand dollar (NZD)
With no major domestic data due, the New Zealand dollar (NZD) is expected to track global sentiment in the coming days. A risk-off environment would likely keep the ‘kiwi’ on the back foot.
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