Weekly FX forecast: Fed and BoE decisions in focus

By Samuel Birnie on June 16 2025 in Economy News, Weekly Forecast

Pound (GBP)
The Bank of England (BoE) is widely expected to leave interest rates unchanged at its policy meeting this week, leaving the focus on its forward guidance. Any indication that an August rate cut is on the cards could pressure the pound (GBP).

Euro (EUR)
Germany’s latest ZEW economic sentiment index is the key release for the euro (EUR) this week. With sentiment in the Eurozone’s largest economy expected to have improved this month, the single currency could enjoy support.

US dollar (USD)
In the spotlight this week will be the Federal Reserve’s latest interest rate decision. If the bank continues to hold rates and reiterates that increased uncertainty could stay its hand for the time being, the US dollar (USD) could climb.

Australian dollar (AUD)
Australia’s latest jobs report is due out on Thursday, with an expected uptick in overall employment potentially supporting the Australian dollar (AUD). However, geopolitical tensions could undermine the risk-sensitive currency.

South African rand (ZAR)
The South African rand (ZAR) could face pressure this week, if cooling inflation increases bets on a rate cut from the South African Reserve Bank (SARB). Risk aversion could also weigh on ZAR exchange rates.

Canadian dollar (CAD)
The Bank of Canada (BoC) will publish the minutes from its most recent policy decision this week, which could impact the Canadian dollar (CAD). Meanwhile, oil price volatility amid the Israel-Iran conflict could also affect CAD.

New Zealand dollar (NZD)
New Zealand’s first-quarter GDP growth rate is the focus for NZD investors this week. Another quarter of decent economic growth could underpin the New Zealand dollar (NZD).

Weekly FX forecast: Fed and BoE decisions in focus

The article provides weekly forecasts for major currencies based on central bank decisions and economic indicators. Key events include the Bank of England's (BoE) interest rate decision, Germany's ZEW economic sentiment index, the Federal Reserve's rate decision, Australia's jobs report, and other central bank data releases that could impact currency values.