GBP investors will have a slew of notable UK economic releases to contend with this week. Signs of persistent inflationary pressures may dampen Bank of England (BoE) interest rate cut expectations, although they may also raise fresh concerns over stagflation risks.
Pound (GBP)
The UK’s latest consumer price index and wage growth figures will be closely watched by GBP investors this week. Any signs that inflationary pressures are building may lead to a trimming of Bank of England interest rate cut expectations, but stagflation concerns could limit any resulting upside in the pound (GBP).
Euro (EUR)
The Eurozone’s latest PMIs will be in focus for EUR investors this week, with the euro (EUR) at risk of weakening if February’s preliminary figures report private sector growth began to contract again this month.
US dollar (USD)
This week sees the publication of the minutes from the Fed’s latest policy meeting. If the minutes highlight the bank’s caution against further monetary easing, the US dollar (USD) is likely to strengthen.
Australian dollar (AUD)
The Australian dollar (AUD) is likely to face resistance this week as the Reserve Bank of Australia (RBA) is widely expected to deliver its first interest rate cut since 2020, when it concludes its latest policy meeting on Tuesday.
South African rand (ZAR)
South Africa’s latest jobs data could act as a headwind for the South African rand (ZAR) this week as figures for the last quarter of 2024 are expected to report the unemployment rate began to rise again.
Canadian dollar (CAD)
Canada will publish its latest CPI figures on Tuesday. If January’s figures report inflation remains below the Bank of Canada’s (BoC) 2% target, it's likely to stoke bets for additional rate cuts from the bank and weaken the Canadian dollar (CAD).
New Zealand dollar (NZD)
An expected 50-basis-point interest rate cut from the Reserve Bank of New Zealand (RBNZ) could trigger a sharp drop in the New Zealand dollar (NZD) this week.
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