Economic calendar: 5 forex pairs to trade this week

The forex market is expected to see more actions this week due to central bank activity and important economic data. There are also heightened concerns about the inverting yield curve in the United States. So, here are the top forex pairs to trade this week, according to the economic calendar.

GBP/USD

The GBP/USD has been in a downward trend in the past few weeks as investors remain concerned about the UK economy. This week, the pair will be in the spotlight because of the vital economic data that the Office of National Statistics (ONS) will publish.

On Monday, the ONS will release the latest UK GDP data. In addition to these, it will release the closely watched manufacturing and industrial production numbers for February. On Tuesday, the ONS will release the UK jobs data followed by the crucial inflation numbers on Thursday. Therefore, the GBP/USD pair will likely see rising volatility this week.

EUR/USD

The EUR/USD is another forex pair to trade this week. The most important event will be the outcome of the French election that took place on Sunday. At the time of writing, it was unclear who was winning between Marine Le Pen and Emmanuel Macron will win. However, regardless of the winner, the pair will see more activity.

The other key catalyst for the pair will be the upcoming interest rate decision by the European Central Bank (ECB) that will happen on Thursday. The bank is expected to leave interest rates unchanged and signal that it will hike rates later this year.

NZD/USD

The NZD/USD pair is another forex pair to watch this week because of the upcoming interest rate decision by the RBNZ. Analysts expect that the bank will deliver another 25 basis points rate hike and push them to 1.25%. These rate hikes are warranted because the New Zealand economy has had a strong recovery in the past few months. Inflation, especially in the property market, has also risen substantially.

USD/CAD

The USD/CAD pair has rallied recently because of the strong US dollar and the softening crude oil prices. The main catalyst for the pair will be the upcoming interest rate decision by the Bank of Canada. Analysts expect that the BOC will also hike interest rates because of the strength of the Canadian economy as evidenced by the recent jobs numbers. The unemployment rate has crashed to the lowest level in years.

USD/TRY

The USD/TRY is another important forex pair to pay attention to this week. The pair has been in a steady bullish trend lately because of the hesitancy of the Turkish central bank to hike interest rates. Therefore, the pair will be in the spotlight as the Central Bank of the Republic of Turkey (CBRT) makes its decision.