The currency market remained choppy last week, with political uncertainty, shifting risk sentiment, and a couple of high-impact US economic releases all contributing to the volatility.
Last week’s key rate movements
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GBP/EUR – Down 0.2% on the week
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GBP/USD – Up 0.3% on the week
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EUR/USD – Up 0.4% on the week
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AUD/USD – Up 0.8% on the week
Pound (GBP)
GBP investors will be kept on their toes this week with the publication of the UK’s latest inflation and employment figures. If these bolster expectations for an imminent interest rate cut from the Bank of England (BoE), the pound (GBP) is likely to drop.
Euro (EUR)
The Eurozone’s latest PMIs will be in focus for EUR investors this week, with the euro (EUR) at risk of weakening if February’s preliminary figures show private-sector growth continues to moderate.
US dollar (USD)
This week sees the publication of the latest US GDP figures, with the preliminary estimate of growth in the fourth quarter potentially dragging on the US dollar (USD) at the end of the session if it reports that GDP softened.
Australian dollar (AUD)
The minutes from the Reserve Bank of Australia’s (RBA) latest policy meeting could provide a boost for the Australian dollar (AUD) this week if they highlight broad support amongst policymakers for further rate hikes.
South African rand (ZAR)
South Africa’s latest jobs data could act as a tailwind for the South African rand (ZAR) this week as unemployment is expected to have edged lower in the last quarter of 2025.
Canadian dollar (CAD)
Canada will publish its latest CPI figures on Tuesday. If January’s inflation figures continue to tick higher, they are likely to reaffirm expectations that the Bank of Canada (BoC) will keep interest rates on hold through 2026 and underpin the Canadian dollar (CAD).
New Zealand dollar (NZD)
Hawkish guidance from the Reserve Bank of New Zealand (RBNZ) following its first rate decision of the year could boost the New Zealand dollar (NZD) this week.
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