Weekly currency forecast: ECB rate cut to weaken the euro?
Currencies Direct October 14th 2024 - < 1 minute read
Looking to the week ahead, the euro will be centre stage as the European Central Bank (ECB) concludes its latest policy meeting. Expect to see EUR exchange rates weaken if the bank cuts interest rates as expected.
Pound (GBP)
The pound (GBP) may be infused with volatility this week with the publication of the UK’s latest inflation and employment figures. The former will be of particular note, as a cooling of inflation may stoke Bank of England (BoE) interest rate cut bets.
Euro (EUR)
In the spotlight this week is undoubtedly the European Central Bank’s (ECB) latest interest rate decision. Most investors see the bank cutting rates again this month, which is likely to pull the euro (EUR) lower.
US dollar (USD)
The latest US retail sales figures may offer support to the US dollar (USD) later this week, if they report an acceleration in sales growth last month. In the meantime, a cautious mood may help underpin the ‘greenback’ through the first half of the session.
Australian dollar (AUD)
The Australian dollar (AUD) may come under pressure later this week as Australia’s latest jobs report is expected to highlight a slowdown in employment growth last month.
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Currencies Direct