There is a wave of event risk scheduled for the coming week that is almost certain to generate heavy volatility for pairs like USDJPY, GBPUSD and EURUSD. In particular, heavy speculation surrounding and discounting of the Bank of Japan and Bank of England rate decisions present a scenario where the yen and sterling are likely to move regardless of the outcome of the events. Coupled with an ongoing Euro-area crisis and long-simmering threat of market-wide risk aversion, the fundamental pressure is overwhelming. In this weekend's video, we discuss these themes and what trade setups match the various outcomes.
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