News & analysis

Volatility in FX markets wasn’t amiss despite a shortened week for some European and Asian investors. Monday saw the dollar decline after poor ISM data, while a swathe of central banks throughout the week meant the headlines continued to roll in for traders. On Tuesday, Treasury Secretary and Former Fed Chair, Janet Yellen, cast eyebrow-raising comments about the US economy potentially overheating and the need to raise rates, although no time frame was given. However, Friday’s Nonfarm Payrolls data undershot expectations substantially and threw cold water over this argument, with the dollar getting drenched as a result.

Next week, the focus remains on central bank policymakers as market speculation regarding policy normalisation remains elevated. In the week ahead, we take a look at Banxico’s upcoming policy decision as well as recent Fed commentary and the upcoming data calendar.




This information has been prepared by Monex Europe Limited, an execution-only service provider. The material is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is, or should be considered to be, financial, investment or other advice on which reliance should be placed. No representation or warranty is given as to the accuracy or completeness of this information. No opinion given in the material constitutes a recommendation by Monex Europe Limited or the author that any particular transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, it is not subject to any prohibition on dealing ahead of the dissemination of investment research and as such is considered to be a marketing communication.