Here are the best 4 forex pairs to trade this week

Currencies have been a bit volatile lately as investors focus on the recent Federal Reserve, Bank of England, European Central Bank, and Bank of Japan interest rate decisions. The ongoing crisis in Ukraine has also played a major role. So, here are the top forex pairs to trade this week. 

USD/CHF and EUR/CHF

The Swiss franc (USD/CHF) will be in the spotlight this week as investors focus on the upcoming interest rate decision by the Swiss National Bank (SNB). It will be the first decision the bank has made this year. 

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The decision comes at a tough time for the Swiss economy. Recent data shows that the economy is doing relatively well, with the unemployment rate sitting at an all-time low. Wage growth is also happening. 

However, there are concerns about inflation, which has started to creep up in the past few months. And analysts expect the rate to grow as the coat of most things rise. 

The Swiss franc has also strengthened against the euro. Therefore, analysts will watch out closely what the bank will say. 

GBP/USD

The GBP/USD pair was in the spotlight last week as the Bank of England (BOE) delivered its interest rate decision on Thursday. The bank decided to hike interest rates by 0.25%, for the third straight meeting. 

This week, the pair will be in focus as investors watch out for key economic data from the UK. On Wednesday, the Office of National Statistics (ONS) will publish the latest consumer inflation (CPI) data. Despite the BOE implementing two rate hikes, analysts expect the data to show that CPI rose from 5.5% to 5.9% while core CPI rose to 4.9%.

The ONS will then publish the latest UK retail sales numbers on Friday. In all, these numbers will help traders predict the next actions by the BOE. 

USD/ZAR

The South African rand has been relatively strong against the IS dollar lately. It has risen by over 8.75% from the lowest level this year. The USD/ZAR is hovering near its lowest level since November 17th.

The pair will be in the spotlight this week as the South Africa Reserve Bank makes its decision on Thursday. With inflation rising, analysts expect that the SARB will deliver another 0.25% rate hike and bring the prime rate to 7.75% and the headline rate to 4.25%.

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