Plan your strategies for the trading week ahead with key insights from our team.
The ECB’s surprise rate cut sent the euro on a wild ride this week. The central bank fever continues next week with decisions by the Fed, BoE, the BoJ, Norges Bank and the SNB. Norges Bank is expected to cut the deposit rate by 25 basis points. Other central banks are expected to maintain the status quo. The market gives a 2% probability for a Fed rate hike at next week’s meeting.
Secondary focus will be on macroeconomic data. Eurozone and US inflation figures are expected to have little impact on trading. UK and Australian unemployment data will be closely monitored. UK wage growth is expected to have accelerated to 2% y/y in January. A positive surprise could encourage pound bulls to advance their positions towards the 1.45 mark against the US dollar. Australian unemployment unexpectedly increased by 6%. A second month of negative news could curb the appetite for the Aussie and signal a potential retracement, which has surpassed the 75 cents level this week against the US dollar.
- Fed, BoE, Norges Bank & SNB rate decisions
- UK wage growth expected to rise
- Australian employment data