Volatile market conditions led to notable shifts in the currency market last week, with the pound perhaps seeing the most dramatic swings after a surprisingly dovish interest rate decision by the Bank of England (BoE).
Last week’s key rate movements
-
GBP/EUR – Down 0.3% on the week
-
GBP/USD – Down 0.6% on the week
-
EUR/USD – Down 0.4% on the week
-
AUD/USD – Up 0.7% on the week
Pound (GBP)
The publication of the UK’s latest GDP figures could underpin the pound (GBP) this week if they report that economic growth accelerated in the last quarter of 2025. However, potential UK political uncertainty could prove a challenge to the currency.
Euro (EUR)
Barring a revision to the Eurozone’s fourth-quarter GDP figures, notable EUR data is in short supply this week, which may leave the euro (EUR) driven by wider market trends.
US dollar (USD)
USD investors will be kept on their toes by a delayed payroll print and inflation figures this week. If these further dampen expectations for Federal Reserve interest rate cuts, the US dollar (USD) is likely to strengthen.
Australian dollar (AUD)
This week sees the publication of Australia’s latest consumer and business confidence figures. If they report that sentiment continues to deteriorate, the Australian dollar (AUD) could face headwinds in the first half of the session.
South African rand (ZAR)
In the absence of any notable domestic economic releases, movement in the South African rand (ZAR) is likely to remain linked to precious metal prices and broader risk sentiment this week. If gold prices continue to recover, ZAR demand is expected to strengthen.
Canadian dollar (CAD)
The performance of the Canadian dollar (CAD) is likely to be tied to oil price dynamics this week amid a lull in domestic data. Expect the ‘loonie’ to face downside risks if crude prices continue to decline.
New Zealand dollar (NZD)
The release of New Zealand’s latest manufacturing PMI may provide a boost for the New Zealand Dollar (NZD) this week if it reports factory sector activity remained strong at the start of 2026.
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.
