Pound (GBP)
Alongside the UK’s upcoming GDP release, commentary from Andrew Bailey, Governor of the Bank of England (BoE), will be a key driver for the pound (GBP) this week. Should Bailey push back against market expectations for aggressive rate hikes, Sterling could come under pressure.
Euro (EUR)
For EUR investors, the focus will be on the European Central Bank’s (ECB) March meeting minutes. Markets will be seeking clues on how policymakers view the Middle East conflict, with the euro (EUR) likely to appreciate if the minutes suggest a more hawkish stance on interest rates.
US dollar (USD)
The US dollar (USD) is expected to remain highly sensitive to developments in the Middle East. If geopolitical tensions escalate further following the collapse of recent peace talks, demand for safe-haven assets could drive the ‘greenback’ higher.
Australian dollar (AUD)
Australia’s latest employment report will take centre stage this week. Strong labour market data may bolster the Australian dollar (AUD) by reinforcing expectations of further tightening from the Reserve Bank of Australia (RBA).
South African rand (ZAR)
The South African rand (ZAR) may struggle this week as rising geopolitical risks and higher oil prices weigh on emerging market currencies, particularly after US President Donald Trump threatened to block Iranian shipping through the Strait of Hormuz.
Canadian dollar (CAD)
With little in the way of domestic releases, the Canadian dollar (CAD) is likely to track movements in oil prices. Continued gains in crude could support the ‘loonie’, while any pullback may exert downward pressure.
New Zealand dollar (NZD)
In the absence of key domestic data, the New Zealand dollar (NZD) is likely to take its cue from broader market sentiment. Heightened tensions in the Middle East could dampen demand for the risk-sensitive currency.
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