FX weekly forecast: Strong payrolls print to boost the US dollar?
Philip McHugh December 2nd 2024 - < 1 minute read
The latest US non-farm payrolls report is in focus this week. Markets expect to see strong employment growth in November, following October’s shockingly weak figures. Could a robust reading see USD end the week on a high?
Pound (GBP)
Amid a lack of UK data releases this week, speeches from Bank of England (BoE) officials may drive movement in the pound (GBP). If policymakers hint that an interest rate cut this month is unlikely, Sterling could strengthen.
Euro (EUR)
A flurry of mid-tier Eurozone data this week could see the euro (EUR) waver, as economists expect mixed results. Meanwhile, any dovish comments from European Central Bank (ECB) President Christine Lagarde could weigh on EUR.
US dollar (USD)
With plenty of American data due this week, the US dollar (USD) could face volatility. The headline release is the latest non-farm payrolls report on Friday, where an expected recovery in US jobs creation could boost the ‘greenback’.
Australian dollar (AUD)
The Australian dollar (AUD) could strengthen this week with the publication of Australia’s latest GDP figures. Analysts expect Australian economic growth to have accelerated in the third quarter, up from 0.2% to 0.4%.
South African rand (ZAR)
South Africa’s third-quarter GDP figures are also due out this week, with economists expecting growth to have improved from 0.4% to 0.7%. If the figures match forecasts, the South African rand (ZAR) could gain ground.
Canadian dollar (CAD)
Canada’s latest labour market report could drive movement in the Canadian dollar (CAD) this week. Could robust jobs growth help the ‘loonie’ attract support?
New Zealand dollar (NZD)
Market-moving New Zealand data is thin on the ground this week. As a result, the market mood could drive the risk-sensitive New Zealand dollar (NZD). If risk appetite shifts, NZD may face volatility.
Written by
Philip McHugh