The latest US inflation figures will be a key focus this week and may propel the US dollar higher, while a forecast acceleration in UK GDP could strengthen the pound.
Last week’s key rate movements
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GBP/EUR – Up 0.4% on the week
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GBP/USD – Down 0.3% on the week
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EUR/USD – Down 0.5% on the week
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AUD/USD – Down 2.3% on the week
Pound (GBP)
The UK’s latest GDP figures will be the primary focus for GBP investors this week. Consensus estimates predict GDP growth accelerated in the third quarter, potentially boosting the pound (GBP) in the second half of the week.
Euro (EUR)
In the absence of any notable Eurozone macroeconomic data, the focus for EUR investors may turn back to France and its ongoing debt crisis, possibly limiting the euro's (EUR) upside potential.
US dollar (USD)
The latest US consumer price index will be in the spotlight this week. If US inflation continues to accelerate, it's likely to stoke Federal Reserve interest rate hike bets and lift the US dollar (USD).
Australian dollar (AUD)
Australia's latest consumer confidence survey may act as a headwind for the Australian dollar (AUD) in the first half of this week, as sentiment is expected to have declined for a third consecutive month in November.
South African rand (ZAR)
The South African rand (ZAR) could receive a boost this week if South Africa’s latest unemployment figures report that the jobless rate fell in the third quarter.
Canadian dollar (CAD)
Movement in the commodity-linked Canadian dollar (CAD) is likely to be tied to oil price dynamics this week amid a lull in domestic data, with a further softening of global crude prices potentially dragging on CAD.
New Zealand dollar (NZD)
The results of New Zealand's general election will likely act as the primary catalyst for the New Zealand dollar (NZD) at the start of this week, with the slimmest majority for the ruling coalition helping to ease political uncertainty and lift the 'kiwi'.
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