• Rate hike possible in the UK
  • Bank of Japan could reduce bond buying
  • US employment data due on Friday

This week, central banks will take to the stage with a storm of important policy announcements.

The FOMC could become the most-watched event between now and Friday. Although Fed members have strongly hinted at more interest rate hikes before the end of this year, it’s unlikely that the first one will be announced this week.

The Bank of England might be preparing for a rate hike of its own, from 0.5% to 0.75%.

The Bank is Japan is preparing for major moves, and according to speculators, it is attempting to reduce its huge bond-buying program. The JPY was in an uptrend last week and such an announcement could dominate the news this week.

US employment data set to be released on Friday will also be closely watched by forex markets because it will give a good indication of the strength of the economy.

Bitcoin managed to claw its way back above $8,000 and appears to be strong right now. There might well be more upside ahead.

Gold continues to trickle downward, and the trend is clearly bearish. Watch this market closely for more opportunities for shorting the metal.

USD/JPY is entering what could be a major week. The JPY has been more bullish than the USD, resulting in a lower USD/JPY rate. Should the BOJ reduce its bond-buying program, expect this currency pair to weaken further.

GBP/USD could be heading higher this week if the UK announces an interest rate increase because this will be seen as a sign of an improving economy. Unfortunately for the UK, the US economy is currently doing even better, so the downtrend in the GBD/USD might well remain for now.

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