Having tumbled to multi-month lows against most of its peers last week, the US dollar risks extending these losses later in the session if the Federal Reserve's annual Jackson Hole symposium raises fresh doubts over the bank's policy outlook.
Last week's key rate movements
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GBP/EUR – Unchanged on the week
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GBP/USD – Up 0.8% on the week
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EUR/USD – Up 0.9% on the week
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AUD/USD – Up 1.2% on the week
Pound (GBP)
Following last week's deluge of UK data, there is a bit of a drought this week, which, coupled with ongoing recess in parliament, is likely to leave the pound (GBP) at the mercy of wider market trends.
Euro (EUR)
The publication of the minutes from the European Central Bank's (ECB) latest policy meeting is likely to be a focus for EUR investors this week, with the euro (EUR) set to rise if they suggest that policymakers are ready to back an interest rate hike next month.
US dollar (USD)
Federal Reserve Chair Kevin Warsh's speech at the Fed's annual Jackson Hole symposium and the Bureau of Labor Statistics' annual revision to non-farm payrolls will be key tests for the US dollar (USD) this week and could send the 'greenback' sharply lower if they throw a potential US interest rate hike into question.
Australian dollar (AUD)
Australia will publish its monthly consumer price index on Wednesday, with the ‘Aussie’ poised to fall if a slowdown in inflation dampens bets for further monetary tightening from the Reserve Bank of Australia (RBA).
South African rand (ZAR)
The South African rand (ZAR) may struggle to maintain its recent bullish momentum this week as risk sentiment looks to be pressured by fresh trade uncertainty and questions over Washington's new economic sanctions on Iran.
Canadian dollar (CAD)
The Canadian dollar (CAD) is likely to face an uphill battle this week, with the breakdown of US-Canadian trade talks and the threat of new tariffs likely to sap CAD demand throughout the session.
New Zealand dollar (NZD)
In the absence of any notable domestic data, movement in the New Zealand dollar (NZD) is likely to be tied to market risk dynamics this week, with a cautious mood likely to weigh on the 'kiwi'.
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