It's set to be a busy session for investors this week, with multiple central bank interest rate decisions, US and Eurozone GDP figures, and the UK's Autumn Budget all poised to infuse volatility into the FX market.
Last week's key rate movements
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GBP/EUR – Up 0.6% on the week
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GBP/USD – Up 0.3% on the week
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EUR/USD – Down 0.3% on the week
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AUD/USD – Up 1.3% on the week
Pound (GBP)
UK Chancellor John Healey will publish his inaugural Autumn Budget on Wednesday. Could a positive response to his tax and spending plans help the pound (GBP) to build on its recent support?
Euro (EUR)
The euro (EUR) may face additional headwinds this week, with France's debt crisis potentially leading to a more cautious outlook from the European Central Bank (ECB) as it delivers its latest interest rate decision, while a sharp slowdown in the Eurozone's third-quarter GDP reading could also sap EUR sentiment.
US dollar (USD)
While the Federal Reserve is widely expected to keep interest rates on hold this week, hawkish guidance from the US central bank could underpin the US dollar (USD), particularly if a robust third-quarter GDP print reinforces expectations for a December hike.
Australian dollar (AUD)
Australia’s latest consumer price index will act as the primary catalyst for the Australian dollar (AUD) this week. If the CPI figures report inflation ticked up in the third quarter, it's likely to reinforce Reserve Bank of Australia (RBA) rate hike bets.
South African rand (ZAR)
Movement in the South African rand (ZAR) is likely to be tied to market risk dynamics this week, with energy price concerns potentially weighing on sentiment and ZAR exchange rates.
Canadian dollar (CAD)
The Canadian dollar (CAD) may attract notable support this week, courtesy of elevated oil prices and an expected interest rate hike from the Bank of Canada (BoC) when it concludes its latest policy meeting on Wednesday.
New Zealand dollar (NZD)
A widely expected interest rate hike from the Reserve Bank of New Zealand (RBNZ) may offer a shot in the arm for the New Zealand dollar (NZD) this week, particularly if there's a hawkish tilt to its forward guidance.
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