Fed, BoE and BoJ in focus this week - Rabobank


According to analysts at Rabobank, the Fed, the BoE and the BoJ are likely to be the key events this week as they all will hold their monetary policy meetings in the last proper week of trading in a volatile 2018.

Key Quotes

“With the December rate hike of 25bp fully priced in, the market’s attention has shifted to the Fed’s policy path in 2019. The new FOMC projections are likely to reflect the deterioration in economic data and market sentiment that didn’t go unnoticed by various Fed speakers. If the FOMC participants will remove only one of the three hikes for 2019, that would still leave the dot plot with one more hike than markets are currently expecting for next year. Philip anticipates just one hike next year in March. He also expects expect the yield curve to invert after that hike, signalling a recession in 2020, and ending the hiking cycle altogether.”

“As for Brexit, PM May is under growing pressure from with her own cabinet to consider all available options, including a second referendum, to solve the political impasse caused by lack of support in parliament for her Withdrawal Agreement accompanied by persistent reluctance from other European leaders to offer much stronger assurances regarding the Irish border backstop. That said, May is expected to say that a second vote would be a catastrophic breach of trust. A firm rejection by May to even contemplate another referendum would leave sterling vulnerable amid rising market concerns that the UK is on the path that leads to a hard Brexit.”

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD holds above 1.0650 after US data

EUR/USD holds above 1.0650 after US data

EUR/USD retreats from session highs but manages to hold above 1.0650 in the early American session. Upbeat macroeconomic data releases from the US helps the US Dollar find a foothold and limits the pair's upside.

EUR/USD News

GBP/USD retreats toward 1.2450 on modest USD rebound

GBP/USD retreats toward 1.2450 on modest USD rebound

GBP/USD edges lower in the second half of the day and trades at around 1.2450. Better-than-expected Jobless Claims and Philadelphia Fed Manufacturing Index data from the US provides a support to the USD and forces the pair to stay on the back foot.

GBP/USD News

Gold clings to strong daily gains above $2,380

Gold clings to strong daily gains above $2,380

Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.

Gold News

Ripple faces significant correction as former SEC litigator says lawsuit could make it to Supreme Court

Ripple faces significant correction as former SEC litigator says lawsuit could make it to Supreme Court

Ripple (XRP) price hovers below the key $0.50 level on Thursday after failing at another attempt to break and close above the resistance for the fourth day in a row. 

Read more

Have we seen the extent of the Fed rate repricing?

Have we seen the extent of the Fed rate repricing?

Markets have been mostly consolidating recent moves into Thursday. We’ve seen some profit taking on Dollar longs and renewed demand for US equities into the dip. Whether or not this holds up is a completely different story.

Read more

Forex MAJORS

Cryptocurrencies

Signatures