3 forex pairs to trade this week: USD/TRY, AUD/USD, USD/INR

The forex market is expected to be a bit muted this week as investors reflect on the US non-farm payrolls (NFP) data and the ongoing crisis in Ukraine. Still, some currency pairs will be in the spotlight. Here are the top forex pairs to trade this week.

USD/TRY

The Turkish lira has been in a slow upward climb in the past few months. It has risen in the past three straight months as investors focus on the rising inflation and inaction from the Central Bank of the Republic of Turkey (CBRT). 

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Therefore, the USD/TRY pair will be in the spotlight this week as investors focus on the latest Turkish consumer inflation data that will come out on Monday. Economists expect the data to show that the country’s inflation jumped from 4.81% in February to 5.77% in March. 

This increase will then translate to a year-on-year gain of 61.60%. If analysts are accurate, it means that Turkey is seeing its biggest inflation on record. Also, it is a sign that the country has the highest inflation globally. 

Unlike other countries that are having a strong rate of inflation, the CBRT is mostly doing nothing after it made several rate cuts last year. Therefore, the USD/TRY will likely see some volatility after the latest inflation data.

AUD/USD

The AUD/USD pair will be in the spotlight thin month as investors focus on the upcoming interest rate decision by the Reserve Bank of Australia (RBA). This will be an important decision because the bank is expected to provide a guidance on future rate hikes. In its recent rate decisions, the bank has signalled that it will maintain rates at the current range until inflation remains above 3%. 

It will also be an important decison because the Australian dollar has been in a strong bullish trend in the past few months. It has risen by more than 7% from its lowest level in February.

USD/INR

The USD/INR pair has declined by more than 1.87% from its highest level in March but it remains 5% above its lowest level last year. The Indian rupee has gained as investors price in that the Reserve Bank of India will maintain a more hawkish tone. The bank, which has maintained a dovish tone recently will deliver its interest rate decision on Friday this week. Analysts believe that it will leave its rate at 4% where it has been for months.

Other forex pairs to trade this week will be the USD/RUB and EUR/USD. The USD/RUB will be in the spotlight because of the ongoing crisis in Ukraine while the EUR/USD will be watched because of the ongoing energy crisis.