After recent US CPI releases, the upcoming US retail sales data may also have an impact on expectations for a Fed rate hike. Similarly, UK inflation numbers could influence the chances of another Bank of England (BoE) hike. Traders in Australia and New Zealand are awaiting the release of Australia’s jobs report and New Zealand’s CPI data. China’s GDP figures could also affect commodity-linked currencies. The dollar has been on the back foot due to dovish comments from Fed officials, but the recent CPI data has fueled rate hike expectations and helped the dollar rebound. Investors will be closely monitoring more Fed speeches for further clarity on interest rates and economic data to gauge the performance of the US economy. The British pound will be in focus next week, with upcoming employment, CPI, and retail sales data. The BoE is expected to keep rates steady, but a final hike may be more likely after the turn of the year. Canada’s inflation numbers will also be released next week, with concerns about underlying inflationary pressures potentially influencing future rate decisions. Traders of risk-linked currencies like the Australian dollar and New Zealand dollar will be busy with the release of RBA meeting minutes, Australia’s jobs data, and New Zealand’s Q3 CPI. The RBA and RBNZ have remained sidelined, but strong labor market data could change expectations. China’s GDP figures and economic data will also have an impact on Australian and New Zealand currencies due to close trade ties. Additionally, the earnings season is beginning with major US banks and companies like Tesla and Netflix reporting their results.
