Week Ahead: RBA Rate Hike, UK Elections, US NFP to Drive Major Pairs

The upcoming week presents a packed calendar of high-impact events set to drive significant volatility across major forex pairs including GBP/USD, USD/JPY, AUD/USD, and USD/CAD. The Reserve Bank of Australia is expected to deliver a rate hike, which would provide a bullish catalyst for AUD/USD as higher rates attract yield-seeking capital flows. In the UK, local elections carry political risk implications for GBP pairs, with results potentially influencing market expectations around fiscal policy direction and Bank of England positioning. The marquee event arrives Friday with the US Non-Farm Payrolls report, which will be pivotal for the Federal Reserve's monetary policy outlook and could set the tone for USD crosses heading into the following week. A strong jobs number would reinforce hawkish Fed expectations and support USD strength, while a miss could accelerate dollar selling. Traders should prepare for heightened volatility around each event, with particular attention to AUD/USD around the RBA decision and USD/JPY and USD/CAD surrounding the employment release.