Pound (GBP)
The Bank of England (BoE) is due to announce its latest interest rate decision later this week. While the widely anticipated rate hike could provide a boost to the pound (GBP) in the second half of the week, any dovish signals from policymakers about the outlook for borrowing costs may limit Sterling’s gains.
Euro (EUR)
The euro (EUR) could find support this week from the Eurozone’s preliminary inflation figures for October. A further acceleration in price growth would increase pressure on the European Central Bank (ECB) to restart its interest rate hiking cycle.
US dollar (USD)
The prospect of a potential ‘blue wave’ in the US mid-term elections represents a significant headwind for the US dollar (USD) this week. Meanwhile, Friday’s non-farm payrolls report could also weigh on the currency if it points to another deterioration in labour market conditions during October.
Australian dollar (AUD)
The Reserve Bank of Australia’s (RBA) latest interest rate decision is likely to dominate the agenda for Australian dollar (AUD) investors at the start of the week. The currency could strengthen if the bank raises rates as expected and signals that further monetary tightening remains a possibility.
South African rand (ZAR)
With little in the way of significant domestic economic releases scheduled, the South African rand (ZAR) is likely to take its cues from broader market sentiment this week. Renewed concerns over a possible escalation of tensions in the Middle East could dampen appetite for the emerging market currency.
Canadian dollar (CAD)
The Canadian dollar (CAD) could come under pressure towards the end of the week if another disappointing employment report weakens the case for the Bank of Canada (BoC) to pursue further interest rate hikes.
New Zealand dollar (NZD)
New Zealand’s latest employment figures are forecast to show that unemployment declined in the third quarter, potentially offering support to the New Zealand dollar (NZD). However, any gains may be limited by political uncertainty ahead of Saturday’s general election.
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