Weekly Preview:

The US Fed, SNB, BoE and ECB meet to decide on monetary policy.

Our focus over the week ahead will be the US FOMC, ECB and BoE policy decisions.

  • Dec 13, FOMC policy meeting

It is widely expected that a third-rate hike for 2017 is coming to the Yellen’s last FOMC press conference. The December 2017 rate hike was priced in fully. We expect only the Fed is expected to hike this week.  Market participants are closely watching for future rate hike path. Currently FX market is expecting three rate hikes in 2018. A bullish market reaction could expect if four hikes are projected.

  • Dec 14, ECB’s monetary policy meeting and Press conference following the Governing Council meeting of the ECB

After the decision to extend until the end of September 2018, we expect in December meeting the ECB unlike to make any changes to its policy view and forward guidance.

  • Dec 14, BoE’s Monetary policy summary

After the Bank of England delivered its first bank rate hike to 0.5% from 0.25% for the first time over a decade, we expect in December meeting the BoE will keep the Bank rate at low levels for some time. In case if BoE follows Bank of Canada’s September surprise hike a bullish GBP reaction nearly 1.5% could expected against the most traded currencies.

Chart of the day: EURNZD sell idea

It is important to always keep in mind the risks involved in trading with leveraged instruments.

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