Strategy Video: Heavy Rate and Stimulus Speculation This Week
• While risk trends are a constant threat/opportunity, monetary policy expectations are an imminent risk
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As liquidity fills out, FX traders ready for the next wave of fundamental speculation to take the markets. Given the range of scheduled event risk, rate speculation promises to be a key theme this week. Some of the majors will be driven by distinct catalysts: the RBNZ rate decision for the New Zealand dollar, 1Q CPI for the Australia dollar and inflation statistics for the Japanese yen. Yet, the rate forecasts with less distinct catalysts may fuel the bigger trends. Rate forecasts for the US, Eurozone, UK and China threaten to produce bigger trends for their respective currencies and perhaps even global risk trends. We discuss where rate speculation falls for the different currencies, the potential catalysts on deck and the trade opportunities they present in today's Strategy Video.
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