Pound (GBP)
Political developments in the UK are set to remain the dominant driver for the pound (GBP) this week, with the announcement of Prime Minister Keir Starmer’s departure potentially infusing some fresh risk premium into Sterling.
Euro (EUR)
For euro (EUR) investors, attention will centre on the Eurozone’s flash PMI releases this week. Should the surveys indicate that private sector activity across the bloc remained in contraction territory this month, the single currency may come under pressure.
US dollar (USD)
The Federal Reserve’s preferred measure of inflation, the core PCE price index, will be closely watched by USD investors this week. A stronger-than-forecast reading for May could bolster interest rate hike expectations and provide support for the US dollar (USD).
Australian dollar (AUD)
Australia’s upcoming consumer price index will be a key catalyst for the Australian dollar (AUD) this week. Economists expect headline inflation to accelerate again in May, and a stronger reading may revive speculation of additional tightening from the Reserve Bank of Australia (RBA).
South African rand (ZAR)
The South African rand (ZAR) may struggle to attract support this week in the absence of any notable domestic data and investors continuing to err on the side of caution amid a shaky start to US-Iran technical talks.
Canadian dollar (CAD)
Lower oil prices are expected to remain a drag on the Canadian dollar (CAD) through the week. However, any downside may be limited if Canada’s latest inflation figures encourage speculation that the Bank of Canada (BoC) could still consider raising interest rates later this year.
New Zealand dollar (NZD)
With New Zealand’s economic calendar relatively quiet, movement in the New Zealand dollar (NZD) is expected to be driven primarily by broader market sentiment and shifts in global risk appetite over the coming days.
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