Labour Market
GBP
The British Pound may come under pressure this week if UK jobs data shows further weakness in the labour market. Higher unemployment and slower wage growth could influence expectations around the Bank of England’s next interest rate decision. With several key UK economic releases due, including inflation and retail sales, investors are likely to remain cautious as they assess the Pound’s near-term direction.
EUR
The Euro could receive some support this week if economic confidence in Germany continues to improve. Investors will be watching the latest ZEW sentiment figures, with expectations that business confidence has strengthened for a fifth consecutive month. However, limited economic data elsewhere in the Eurozone may leave the Euro vulnerable to wider market movements and changes in investor sentiment over the coming days.
USD
The US Dollar could remain well supported this week as markets expect the Federal Reserve to raise interest rates. The Dollar may also benefit from increased demand for safe-haven assets if global tensions continue to unsettle financial markets. With limited US economic data due on Tuesday, investor confidence and overall market sentiment could play a key role in shaping the Dollar’s direction.
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