Talking Points:
• Top event risk for the week is Wednesday's FOMC rate decision
• A change in the influence of monetary policy on markets is already underway, defined by odd ECB and BoJ market response
• Other key policy decisions this week include: BoJ, SNB, BoE, the Russian, Mexican, Norwegian and South African calls
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Chief Strategist John Kicklighter discusses the top Forex fundamental themes for the coming week of trading. Monetary policy is the theme for the markets this week. There are plenty of monetary policy meetings for Japan, Switzerland, the UK, Russia, Mexico, South Africa and Norway. However, the ability to draw the entire market resides with Wednesday's FOMC rate decision. A hike is unlikely at this meeting given data trends and central bank rhetoric, but a suggestion that more than one additional upgrade this year would catch many dovish observers offguard. What's more, given the unusual market reactions at the most extreme dovish end of the policy curve (particularly with the ECB and BoJ); the fundamental landscape is shifting. We discuss the event risk and its deeper implications in this webinar.
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