Next Week: 6 G-10 Central Banks Meet, But Only 2 Move - BOE Cuts And BOJ Hikes
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Marc Chandler17.09K FollowersFollow5ShareSavePlay(22min)CommentsSummaryThe week ahead features six G10 central bank meetings (ECB, BOE, Norway's Norges Bank, Sweden's Riksbank, the RBNZ and the BOJ).The Federal Reserve's rate cut coupled with new effort to provide ample reserves via T-bill purchases sent the greenback lower.The conventional narrative claims that higher rates in Japan will spur Japanese investors to repatriate funds.Sterling reached almost $1.3440 last week, its best level since October 20, and slightly shy of the (61.8%) retracement of the losses since the September 17 high. Douglas Rissing/iStock via Getty Images Encouraged by the Federal Reserve's rate cut and its T-bill purchases, the dollar was sold.
The Dollar Index fell for the fourth week in the past five. Leaving aside the Bank of England, which will most likely cutThis article was written byMarc Chandler17.09K FollowersFollowMarc Chandler has been covering the global capital markets in one fashion or another for 25 years, working at economic consulting firms and global investment banks. A prolific writer and speaker he appears regularly on CNBC and has spoken for the Foreign Policy Association. In addition to being quoted in the financial press daily, Chandler has been published in the Financial Times, Foreign Affairs, and the Washington Post. In 2009 Chandler was named a Business Visionary by Forbes. Marc's commentary can be found at his blog (www.marctomarket.com) and twitter www.twitter.com/marcmakingsenseQuick InsightsHow does the Fed's recent policy shift affect the dollar's near-term outlook?The Fed's rate cut and T-bill purchases have pressured the dollar lower, but momentum indicators now warn of an overextended decline, suggesting a likely consolidation phase.What are the key central bank actions to watch in the coming week?The Bank of England is expected to cut rates, while the Bank of Japan is likely to hike; other G10 central banks are set to hold steady.Are current FX trends in EUR, GBP, and AUD sustainable in the short term?Momentum indicators for EUR, GBP, and AUD are stretched, implying heightened risk of corrective or consolidative price action in the near term.Recommended For You