Fundamental Forecast: ECB, Fed and RBA Rate Forecasts Dominant This Week
Talking Points:
• The ECB rate decision on Thursday is the most prominent event risk on the docket this week
• Rate expectations threaten to be a dominant drive as policy meetings and key data luminate speculators way
•Risk trends are not to be forgotten - nor are they to be over-estimated
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Chief Strategist John Kicklighter discusses the top Forex fundamental themes for the coming week of trading. These sessions are held live every Monday at 16:30 GMT. Risk trends and monetary policy expectations are the two dominant drivers in the FX markets. While speculative appetites will always be a factor, this week's event risk caters to weighing rate hikes versus stimulus upgrades on a range of policy meetings and key data releases. Currency traders are focusing on Thursday's ECB decision - expected to end with a rate cut, new stimulus, targeting lending and/or other measures - but there is event risk tapping into all of the major central banks' agendas this week.
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