US President Donald Trump’s new tariffs will continue to infuse volatility in the currency market this week, with more dramatic swings expected as other countries announce retaliatory tariffs.
Pound (GBP)
This week sees the publication of the UK’s latest GDP data. February’s month-on-month figures are expected to report the UK economy returned to growth, which may bolster the pound (GBP) at the end of the session.
Euro (EUR)
In the absence of any market-moving Eurozone data, movement in the euro this week is likely to be driven by transatlantic trade tensions. If the EU retaliates against the US tariffs, it risks escalating things into a full-blown trade war. Concerns over which may weigh on the euro (EUR).
US dollar (USD)
The fallout from US President Donald Trump’s tariffs will likely continue to infuse volatility in the US dollar (USD) this week. On the data front, USD exchange rates will also be influenced by the latest US consumer price index, where a cooling of inflation last month may place more pressure on the ‘greenback’.
Australian dollar (AUD)
The recent plunge in the Australian dollar (AUD) is likely to persist this week as US-China trade tensions continue to rise, with an expected deterioration in Australian business and consumer confidence likely to reinforce this decline.
South African rand (ZAR)
The South African rand (ZAR) risks slipping to new multi-month lows this week as the turmoil surrounding Trump’s tariffs and the schism in South Africa’s coalition government are likely to limit demand for the emerging-market currency.
Canadian dollar (CAD)
The Canadian dollar (CAD) may struggle to attract support this week as the ongoing plunge in oil prices is likely to further diminish the appeal of the commodity-linked ‘loonie’.
New Zealand dollar (NZD)
The Reserve Bank of New Zealand (RBNZ) will deliver its latest interest rate decision this week. If the RBNZ delivers another cut and strikes a more dovish tone in light of the risks posed by Trump’s tariffs, it’s likely we will see the New Zealand dollar (NZD) come under significant pressure on Wednesday.
Never miss a movement. Create a free account with Currencies Direct to get the latest currency news delivered straight to your inbox. You can also set up rate alerts and check live rates 24/7.
