Currency markets are heading into a highly uncertain period next week in which a number of high-profile interest rate decisions and economic reports could cause, potentially, some more sizeable exchange rate moves. The EUR/USD exchange has fallen by a huge 8.8 per cent since October 15 before the European Central Bank’s rate decision and ECB president Mario Draghi’s press conference next week. The pound is currently still sliding towards the critical $1.50-1.48 price range against the US dollar before next week’s UK services PMI report and the US non-farm payrolls data.

Sterling

The pound has traded within a 3.23 per cent price range over the past two months against the US dollar but is currently still sliding towards the critical $1.50-1.48 price range ahead of next week’s important trading points. Next week investors will study the latest UK services and manufacturing PMI surveys before the US non-farm payrolls report. However, the most important event risk which is expected to influence the GBP/USD rate is likely to be Thursday’s ECB rate decision.

US dollar

The US dollar is still holding close to its strongest point since 2003 against a basket of currencies, supported by a huge 8.8 per cent rally against the euro over the past 29 days. The move comes before a critical European Central Bank rate decision on December 3 before Friday’s US non-farm payrolls report. Last month’s ‘blockbuster’ US payrolls sparked a sharp rise in the cost of buying US dollars.

Euro

The euro is on course to set its biggest monthly loss against the US dollar since March before next week’s so-called ‘make-or-break’ ECB monetary policy decision. The EUR/USD exchange rate has now fallen by a huge 8.8 per cent since October 15. Next Thursday the ECB is widely expected to cut interest rates before Draghi hosts a press conference in which he will explain the bank’s latest decision and new economic forecasts.