The recent EUR selling bias looks to remain firmly in place this week as concerns over France's debt burden begin to spill over into the wider European market.
Last week's key rate movements
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GBP/EUR – Up 1.2% on the week
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GBP/USD – Unchanged on the week
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EUR/USD – Down 1.2% on the week
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AUD/USD – Down 1% on the week
Pound (GBP)
Barring a revision to the UK's latest services PMI, the pound (GBP) lacks clear domestic catalysts this week, likely leaving movement in Sterling to be driven by broader currency trends.
Euro (EUR)
France's mounting debt crisis may act as a major headwind for the euro (EUR) this week, with Germany's latest industrial data potentially adding more pressure if it points to a slowdown in the country's key manufacturing sector.
US dollar (USD)
The minutes from the Federal Reserve's September policy meeting may act as a key catalyst for the US dollar (USD) this week, as a slightly dovish tilt could be the final nail in the coffin for an October interest rate hike.
Australian dollar (AUD)
Australia’s latest consumer confidence figures could drag on the Australian dollar (AUD) this week if they report morale going into October continued to deteriorate.
South African rand (ZAR)
A lull in domestic data will see the South African rand (ZAR) remain sensitive to wider market trends this week, with rising oil prices potentially weighing on investor sentiment and the emerging-market currency in the coming days.
Canadian dollar (CAD)
Canada’s latest jobs data will be closely watched by CAD investors this week. If the unemployment rate continued to climb in September, it's likely to further undermine Bank of Canada (BoC) rate hike bets and sink the Canadian dollar (CAD) at the end of the week.
New Zealand dollar (NZD)
In the absence of any notable domestic data, movement in the New Zealand dollar (NZD) will likely be tied to market risk dynamics this week, potentially leaving the 'kiwi' vulnerable if sentiment continues to soften.
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