The Swedish krona lost yet more ground on Friday, dropping off against the majority of its 16 most-traded peers, and taking its quarterly losses to 4% against the US dollar. The Scandinavian currency lost ground mid-week, amid rumours that the central bank will boost monetary stimulus measures, and these losses were furthered on Friday after below-forecast retail sales data.
Looking forward to this week, we expect an interesting performance from the the Australian dollar. The currency has had a strong start to the year, gaining almost 8% against the US dollar, and with a string of strong recent data releases it could leave the central bank with scope to raise interest rates on Wednesday. Most traders are forecasting rates to be held at their current 2.5% level, but with the economy performing well, along with good data out of China, Australia’s biggest trading partner, there is a chance we could see a rise. Other data releases out of Australia this week include trade balance, retail sales and building approvals figures, as well as a speech from the governor of the central bank on Thursday. Other releases this week include Canadian GDP figures, economic health data out of China, interest rate decision from the Swedish central bank and May’s industrial production figures for Japan.
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