5 Best Forex Pairs to Watch This Week (June 22–26, 2026) — Proven Trade Setups Inside

If you’ve been watching the forex market lately, you already know the US dollar has been on a tear. Last week, the Federal Reserve sent a clear message to traders everywhere: rates could stay higher for longer — and possibly go even higher — if inflation doesn’t cooperate.

That single shift in tone rattled currency traders across the globe.

But here’s the thing: volatility isn’t the enemy. It’s the opportunity. And with a packed economic calendar for the week of June 22–26, 2026, the forex market is setting up for some of the biggest moves we’ve seen in months.

This week brings US Flash PMIs, the final US GDP reading, US Core PCE inflation, Australian CPI and Employment data, Canadian CPI, and Japanese inflation figures — a lineup that could send multiple major pairs into sharp directional moves.

So which are the best forex pairs to watch this week? We’ve ranked the five top opportunities based on catalyst clarity, expected volatility, and tradeable setup quality. Let’s break it all down.

The Big Theme This Week: Will the USD Keep Rising?

Following last week’s hawkish Federal Reserve stance, the key macro question for traders is simple: is the US dollar rally sustainable?

The Fed left interest rates unchanged but signaled that additional tightening remains on the table. Several policymakers made it clear that if inflation stays elevated, more rate hikes are coming. That’s a powerful statement — and it’s why US Core PCE Inflation on Thursday is the most important single data point this week.

If PCE comes in hotter than expected, expect the US dollar to strengthen further across the board. If PCE surprises to the downside, we could see a sharp USD pullback that breathes life back into pairs like EUR/USD and AUD/USD.

But before PCE arrives on Thursday, Tuesday’s Global Flash PMIs will give us our first real read on economic momentum across the US, UK, Eurozone, and Germany. Strong US PMIs paired with weak European data would add fuel to the dollar’s rally. Weak US PMIs could be the first crack in the dollar’s armor.

This is what makes the week of June 22–26 so exciting for forex traders. There are multiple setups across multiple pairs — and the data calendar is dense enough to produce real moves.

For more context on last week’s market-moving events, check out our full recap: 7 Forex Pairs to Watch: June 15–19, 2026.

The Economic Calendar: What to Watch and When

Date	Event	Expected Impact
June 22	Canadian CPI	CAD
June 23	Global Flash PMIs (US, UK, Eurozone, Germany)	EUR, GBP, USD
June 24	Australian CPI	AUD
June 25 ⭐	US Core PCE Inflation (MOST IMPORTANT)	USD
June 25	Final US GDP	USD
June 25	US Durable Goods Orders	USD
June 25	Australian Employment Data	AUD
June 25	Japanese CPI	JPY
Throughout Week	ECB & Central Bank Speeches	EUR, USD, GBP

Thursday, June 25 is clearly the biggest day of the week — three major US data releases land on the same day, alongside Australian employment figures and Japanese CPI. Circle it on your calendar now.

The 5 Best Forex Pairs to Watch This Week (June 22–26, 2026)

#5 — GBP/USD (Cable) ⭐⭐⭐⭐

The British pound is in a tough spot heading into this week. The Bank of England has maintained a cautious approach to monetary policy despite lingering inflation concerns. Markets are waiting to see whether the UK economy has the growth momentum to support a more hawkish BoE stance — or whether the data tells a different story.

Key catalysts for GBP/USD this week:

• UK Flash PMIs (Tuesday, June 23)
• UK Retail Sales
• US Core PCE Inflation (Thursday, June 25)

The trading bias here is neutral to bearish. If UK Flash PMIs disappoint while US data continues to print strong, Cable could see further downside pressure. The pair is essentially caught between a cautious BoE on one side and a hawkish Fed on the other — and right now, the Fed has the stronger hand.

That said, GBP/USD could find a floor if UK PMIs beat expectations and PCE comes in softer than forecast. Watch Tuesday’s PMI releases as the first real catalyst for the week.

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#4 — USD/CAD ⭐⭐⭐⭐

The Canadian dollar comes into focus early this week, with Canadian CPI landing on Sunday, June 22. This is a crucial reading because the Bank of Canada has been navigating a delicate balance between fighting inflation and supporting a slowing economy.

Crude oil prices add another layer of complexity to USD/CAD. Canada is a major oil exporter, which means oil market movements can influence the loonie’s direction independently of monetary policy expectations.

Key catalysts for USD/CAD this week:

• Canadian CPI (June 22)
• US Core PCE Inflation (June 25)
• Crude Oil Prices (throughout the week)

Trading bias: Event-driven. A hotter-than-expected Canadian CPI reading would support the CAD and pressure USD/CAD lower. A soft reading, however, combined with strong US data, could push USD/CAD higher. This pair offers a clean binary trade around the CPI number early in the week — one of the more straightforward setups if you’re willing to trade the event.

#3 — USD/JPY ⭐⭐⭐⭐⭐

USD/JPY is always worth watching when US Treasury yields are in play — and this week, with Core PCE and GDP on the calendar, yields are very much in play.

The pair has been creeping toward historically significant levels where Japanese authorities have previously intervened to support the yen. This makes USD/JPY a two-way risk trade this week: upside from a strong US inflation print, but sharp downside risk if intervention concerns resurface or if Japanese CPI data comes in stronger than expected.

Key catalysts for USD/JPY this week:

• Japanese CPI (Thursday, June 25)
• Japanese PMIs
• US Core PCE Inflation (Thursday, June 25)
• US Treasury yield movements

Bullish USD/JPY scenario: Strong US inflation, rising Treasury yields, and weak Japanese CPI keep the dollar bid and the yen under pressure.

Bearish USD/JPY scenario: Softer US inflation, a stronger-than-expected Japanese CPI print, and any comments from Japanese officials about yen weakness could trigger a sharp reversal.

Trading bias: Range-bound with downside risk near intervention levels. This pair is a high-conviction trade on PCE day, but requires tight risk management given the potential for sudden, intervention-driven moves.

#2 — EUR/USD ⭐⭐⭐⭐⭐

EUR/USD is the world’s most liquid and most traded currency pair — and this week, it has multiple high-impact catalysts that could send it sharply in either direction.

The pair is highly sensitive to both sides of the Atlantic simultaneously. On the European side, Flash PMIs from the Eurozone and Germany on Tuesday will give traders their first look at the health of the continental economy. ECB speeches throughout the week — potentially including comments from Christine Lagarde — add another variable to monitor.

Key catalysts for EUR/USD this week:

• Eurozone Flash PMIs (Tuesday, June 23)
• German Flash PMIs (Tuesday, June 23)
• ECB Speeches (throughout the week)
• US Flash PMIs (Tuesday, June 23)
• US Core PCE Inflation (Thursday, June 25)

Bullish EUR/USD scenario: Eurozone PMIs beat expectations, US PMIs disappoint, and Core PCE comes in softer than forecast. This combination would suggest the US rate path is less aggressive than feared while the Eurozone economy holds up — a clear EUR/USD buy signal.

Bearish EUR/USD scenario: US inflation remains sticky, US PMIs show continued economic resilience, and traders begin pricing in additional Fed tightening. In this scenario, the dollar retains its advantage and EUR/USD faces further downside.

Trading bias: Slightly bearish EUR/USD. The Fed’s hawkish shift combined with the dollar’s recent strength creates headwinds for the pair this week. However, EUR/USD could snap back sharply if either PMIs or PCE surprise to the upside for the euro.

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#1 — AUD/USD ⭐⭐⭐⭐⭐ (The Most Interesting Best Forex Pair to Watch This Week)

If there is one pair that could produce the largest move this week, it is AUD/USD — and it isn’t particularly close.

Australia drops two market-moving reports in a 24-hour window: CPI on Wednesday and Employment Data on Thursday. Together, these reports will likely determine the Reserve Bank of Australia’s next policy move — and the market knows it.

The RBA has been walking a tightrope between taming inflation and avoiding a hard economic landing. The inflation print on Wednesday gives us critical data on whether their policy is working — or whether more hikes are needed. Then, just hours before US Core PCE hits the wires, Australia releases employment figures that could amplify or reverse any AUD move from Wednesday.

Bullish AUD/USD scenario:

• Australian CPI remains elevated (inflation still a problem)
• Employment data comes in strong
• Markets price in additional RBA rate hikes
• US Core PCE disappoints simultaneously — double tailwind for AUD

Bearish AUD/USD scenario:

• Australian inflation cools sharply (RBA policy working)
• Employment data weakens
• US dollar strengthens on a hotter-than-expected Core PCE print

Trading bias: High volatility expected. AUD/USD is the pair most likely to produce a significant directional move this week, making it the top pick for active forex traders. The key is patience — wait for Wednesday’s CPI print before committing to a direction, then reassess after Thursday’s employment and PCE data land.

Bonus Watch: NZD/USD ⭐⭐⭐

NZD/USD often moves in tandem with AUD/USD due to the close economic and geographic ties between Australia and New Zealand. If Australian CPI surprises higher and drives broad AUD gains, NZD/USD is likely to benefit from the same wave of commodity currency strength.

Trading bias: Neutral. Watch AUD/USD first — NZD is likely to follow its neighbor’s lead.

Bottom Line: The Week in One Paragraph

The US Core PCE Inflation report on Thursday, June 25 is the single most important data release for forex markets this week. Before that, Tuesday’s Global Flash PMIs will set the early directional tone for global growth sentiment. The pairs most likely to see significant moves are AUD/USD (#1), EUR/USD (#2), and USD/JPY (#3). A hotter-than-expected PCE reading would broadly support the US dollar, while a softer reading could trigger a multi-pair USD pullback and give commodity currencies room to run. For your InvestingEngineer audience, AUD/USD and EUR/USD currently offer the best combination of volatility, clear catalysts, and tradeable setups for the June 22–26 trading week.

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Conclusion

The week of June 22–26, 2026 is shaping up to be one of the most event-heavy weeks of the quarter for forex traders. With the Federal Reserve already in a hawkish mode and markets hanging on every inflation data point, the stakes for this week’s key releases couldn’t be higher.

AUD/USD tops our list as the most compelling setup, with two major domestic data releases sandwiched around the biggest US event of the week. EUR/USD and USD/JPY round out the top three, offering traders clear macro narratives to work with. USD/CAD and GBP/USD provide additional opportunities for traders willing to play the event calendar.

Whether you’re trading the PCE print on Thursday or positioning ahead of Tuesday’s PMIs, make sure you have a plan, a stop-loss, and a broker you trust.

For a full broker comparison, our Pepperstone review is a great starting point. And if you are ready to trade this week’s setups, open your Pepperstone account here and get ready for what could be a very active five days in the forex market.

Happy trading — and stay sharp out there.