The pound maintained a bullish trajectory last week as better-than-forecast UK economic indicators reinforced recent hawkish Bank of England (BoE) interest rate bets.
Last week's key rate movements
-
GBP/EUR – Up 0.4% on the week
-
GBP/USD – Up 0.8% on the week
-
EUR/USD – Up 0.4% on the week
-
AUD/USD – Down 0.3% on the week
Pound (GBP)
The UK’s consumer price index will likely act as the primary catalyst of movement for the pound (GBP) this week. Expect traders to continue to trim BoE rate cut bets if inflation accelerated again in July.
Euro (EUR)
The Eurozone’s preliminary PMIs for August will likely be a key focus for EUR investors this week. July’s preliminary figures are expected to report an acceleration of growth in the bloc's private sector, which may help to lift the euro (EUR) later in the session.
US dollar (USD)
All eyes will be on Federal Reserve Chair Jerome Powell this week as his keynote speech at the bank’s annual Jackson Hole Symposium will set the tone for a potential September rate cut. If he concedes that the bank may need to act swiftly amid a rapidly deteriorating labour market, it could stoke rate cut bets and see the US dollar (USD) test new lows.
Australian dollar (AUD)
The Australian dollar (AUD) may be buoyed by Australia’s latest consumer confidence index this week. If August’s data reports that morale continues to improve.
South African rand (ZAR)
South Africa will publish its latest inflation figures this week, with economists predicting a modest acceleration in price growth. Although any impact on the South African rand (ZAR) is likely to be tied to market risk dynamics
Canadian dollar (CAD)
Canada’s latest CPI figures will be in the spotlight for CAD investors this week. If inflation accelerated in July, it's likely to temper bets for further rate cuts from the Bank of Canada (BoC) and bolster the Canadian dollar (CAD).
New Zealand dollar (NZD)
The Reserve Bank of New Zealand (RBNZ) will deliver its latest interest rate decision this week, with the New Zealand dollar (NZD) poised to fall if the RBNZ cuts rates.
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.
