The US dollar looks poised to test new multi-month lows this week if a cooling of US inflation causes investors to price in more aggressive Federal Reserve interest rate cuts.
Pound (GBP)
The UK will publish its latest GDP figures this week. Economists forecast January’s month-on-month figures will report a softening of growth, which may drag on the pound (GBP) in the latter half of the week.
Euro (EUR)
There is limited Eurozone data on offer this week. An expected rebound in industrial production in January may help to buoy the euro (EUR), but its impact is likely to be limited. More notable movement may instead be driven by EU-US trade tensions and any progress towards a Ukrainian peace deal.
US dollar (USD)
The publication of the latest US consumer price index will be a key focus this week. If February’s CPI figures report a cooling of inflation this may stoke Federal Reserve interest rate cut expectations and apply additional pressure to the US dollar (USD).
Australian dollar (AUD)
This week sees the release of Australia’s latest consumer and business confidence figures. A continued improvement in morale may help to underpin the Australian dollar (AUD) in the first half of the session.
South African rand (ZAR)
ZAR investors will be squarely focused on the publication of South Africa’s annual budget this week. Barring any further delays, the budget is expected to shed light on the government’s fiscal plans and bolster the South African rand (ZAR) if it receives a positive response from markets.
Canadian dollar (CAD)
A key catalyst of movement for the Canadian dollar (CAD) this week will be the Bank of Canada’s (BoC) latest interest rate decision. If the BoC cuts rates and signals that more easing may be needed in light of US-Canada trade tensions we are likely to see the ‘loonie’ remain under pressure.
New Zealand dollar (NZD)
With NZD data in short supply, movement in the New Zealand dollar (NZD) is likely to be tied to market risk dynamics this week. If headlines continue to be dominated by Trump’s tariff threats it's likely the ‘kiwi’ will retreat.
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