Week Ahead – Fed, BoE, and BoJ meetings to fuel FX volatility

From xm.com Watch this video at https://www.metalsmine.com/news/1241541-week-ahead-fed-boe-and-boj-meetings.

The central bank bonanza will kick off with the Fed on Wednesday. Markets are pricing in almost no chance of a rate increase, following several remarks from FOCM officials calling for patience and more time to examine incoming data before making their next move. As such, the market action will most likely come from the updated economic forecasts and the interest rate projections in the new ‘dot plot’. Specifically, will the Fed continue to signal another rate increase this year and how many rate cuts will it telegraph for next year? The latest projections showed interest rates closing next year at 4.6%, projecting roughly 100bps worth of rate cuts from the anticipated peak. But given the streak of robust economic data lately and signs the US economy is not cooling off, the risk is that policymakers signal fewer rate cuts this time.