Mark Carney has come through his first public argument on interest rates with enough scope to contain dissent for now.
While policy makers Martin Weale and Ian McCafferty voted for an increase this month, the gulf between their thinking and that of the governor’s seven-strong majority suggests his view will hold sway, according to economists at banks including Goldman Sachs Group Inc. and UniCredit SpA.
Investors share that outlook, with expectations for the first rate increase staying stuck in May even after the revelation of the first split in more than three years. Even though Carney has given some mixed signals on the potential timing of tightening, his warnings about risks to the recovery signal an entrenched position in his camp.
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AUD/USD extended its positive streak for the sixth session in a row at the beginning of the week, managing to retest the transitory 100-day SMA near 0.6580 on the back of the solid performance of the commodity complex.
EUR/USD finds support near 1.0720 after slow grind on Monday
EUR/USD jostled on Monday, settling near 1.0720 after churning in a tight but lopsided range as markets settled in for the wait US Fed outing. Investors broadly expect US rates to hold steady this week, but traders will look for an uptick in Fed guidance for when rate cuts could be coming.
Gold advances for a third consecutive day
Gold fluctuates in a relatively tight channel above $2,330 on Monday. The benchmark 10-year US Treasury bond yield corrects lower and helps XAU/USD limit its losses ahead of this week's key Fed policy meeting.
Will Bitcoin ignore major macro market developments this week?
Bitcoin price will be an interesting watch this week, with increased volatility expected amid crucial events lined up in the macro market. On Tuesday, Hong Kong will be debuting its BTC and ETH ETFs while the next day will see FOMC minutes make headlines.
Gearing up for a busy week: It typically doesn’t get any bigger than this
Attention this week is fixated on the Federal Reserve's policy announcement scheduled for Wednesday. While the US central bank is widely expected to remain on hold, traders will be eager to discern any signals from the Fed regarding the possibility of future interest-rate cuts.