Pound (GBP)
The pound (GBP) could come under pressure this week as forecasts point to a contraction in the UK’s latest monthly GDP figures for August. However, a series of speeches from Bank of England (BoE) policymakers may help limit Sterling’s losses if hawkish remarks strengthen expectations for future interest rate hikes.
Euro (EUR)
Developments in France’s troubled bond market are likely to remain a key driver of the euro (EUR) this week. The single currency could face further headwinds as the government’s proposed budget comes under scrutiny in parliament, where plans to rein in public spending are expected to encounter considerable resistance.
US dollar (USD)
The latest US consumer price index will take centre stage this week, with an acceleration in inflation potentially lending support to the US dollar (USD). Should the figures reinforce expectations that the Federal Reserve could raise interest rates in December, the ‘greenback’ may strengthen further.
Australian dollar (AUD)
Australia’s upcoming employment report will be a major focus for AUD investors this week. A weaker pace of job creation could undermine expectations for further monetary tightening by the Reserve Bank of Australia (RBA), potentially leaving the Australian dollar (AUD) on the back foot.
South African rand (ZAR)
With little in the way of significant domestic economic releases, the South African rand (ZAR) is likely to take its cues from broader market sentiment and movements in global energy prices this week. Persistently high oil prices could prove a headwind for the emerging-market currency.
Canadian dollar (CAD)
Alongside fluctuations in oil prices, the Canadian dollar (CAD) may take direction from an upcoming speech by Bank of Canada (BoC) Governor Tiff Macklem. A cautious outlook for monetary policy could weaken expectations for interest rate hikes and leave the ‘loonie’ vulnerable to losses.
New Zealand dollar (NZD)
The New Zealand dollar (NZD) is likely to remain sensitive to broader market dynamics this week, with a quiet domestic economic calendar offering few fresh catalysts. Continued risk aversion among investors could weigh on the ‘kiwi’ as demand for risk-sensitive currencies comes under pressure.
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