The focus this week is the Federal Reserve meeting, the Bank of England rate decision and Monetary Policy Report and the ECB meeting. This troika of central bank decisions could set the tone for the rest of the year: the Federal Reserve passing the baton of global leader when it comes to tightening monetary policy. The Fed is now expected to hike rates by 25 basis points, the market is convinced that the Fed will slow the pace of rate hikes further, CMC Fed watch is predicting a 98% chance of a 25 bp rate hike to 4.5% – 4.75% on Wednesday. The Bank of England decision will be closely watched to see if they hike by 25bps or by 50bps, while the ECB is expected to continue with super-size hikes and raise rates by 50bps.
The Fed passes the baton to the ECB and the BOJ
As the Federal Reserve is fading as the key driver in central bank policy, this is having a major impact on the FX…
