Markets: Fed is most important in the week ahead – Nordea Markets

In view of analysts at Nordea Markets, most focus next week will be given to the FOMC meeting on Wednesday, as the market will be looking for signs on how, when and if the quantitative tightening will end.

Key Quotes                  

“We judge that the current consensus expects the Fed to end QT by Q4-2019. Any hints on an earlier exit from the QT programme will give our slightly positive EUR/USD view a boost.”

“In the Euro area Draghi and co will be crossing their fingers for a rebound in PMIs next week (Friday), but if Sweden is as good a guide as in 2018, then the Euro-area slowdown is not over yet. We expect another weak reading with risks on the downside of consensus. However, at the same time we would like to highlight that some of our models actually hint of an upcoming trough in Euro-area PMIs three to four months from now (no models showed that just a few months back).”

“In Scandinavia Norges Bank will meet on Thursday. A March hike from Norges Bank is a done deal (also for markets), but markets clearly expect a dovish ECB to spill over to fewer Norwegian rate hikes going forward. The big question is the extent to which Norges Bank will accept letting international factors overweigh domestic factors in the new rate path.

We think they will i) hike by 25 bp, ii) keep a December 2019 hike fairly alive in the rate path, iii) take down the long end of the rate path.”

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD trims Pound-related gains, back to 1.1150/60 price zone

The EUR/USD pair got a nice short-lived boost from Brexit optimism, although it quickly trimmed gains, as PM May failed to convince the markets. Failure near 1.1200 left doors opened for a retest of the yearly low at 1.1110.


GBP/USD nears 1.2700 as Brexit optimism fades

The GBP/USD pair keeps easing from daily highs and approaches the 1.2700 figure, down from 1.2814 as UK opposition wasn't convinced by PM May 'new' Brexit deal proposal.


USD/JPY extends gains above 110.50, to highest in two weeks despite US Dollar weakness

The USD/JPY broke above 110.25 earlier today and accelerated to the upside. During the American session printed a fresh daily high at 110.63, the strongest in two weeks. 


Gold struggles pull away from May lows, continues to trade near $1270

The XAU/USD pair closed the first day of the week virtually flat below the $1280 mark and came under a renewed pressure on Tuesday as the upbeat market sentiment didn't allow the precious metal to find demand as a safe-haven

Gold News

Anti-EU populism rise not priced in the EUR, European election could hit Euro

The European Union is holding its Parliamentary election next Sunday, May 26th and the impact of this political event seems to be underpriced by currency markets. 

Read more