Forex Strategy Video: Get Ready for Rate Speculation-based Volatility
Talking Points:
• Event risk this week will progress rate expectations for USD, EUR, AUD, JPY and GBP
• Yet, not all of these major are set for a new course or renewed drive through yield forecasts
• The Euro arguably faces the most explicit forecast shift on the ECB while the Pound will be more stoic
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Interest rate expectations are a key fundamental driver for the FX market. Therefore, given the round of scheduled event risk this week, we should be prepared for serious volatility and potentially new trend developments. From the US NFPs to the ECB rate decision to the RBA policy update, there is plenty of fodder to change the 'return' standings of the majors; but - depending on how the larger economies' policy views develop - we may also see risk appetite altered by this theme. We discuss what to watch for, how the currencies are positioned now and which are the most at-risk in today's Strategy Video.
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