Price action in global bond markets continued to dictate the tone for FX markets this week as fixed income traders adjusted to higher inflation readings in Europe, risks of slower growth profiles in the eurozone and China, and fresh monetary policy decisions from the Bank of Japan and the Riksbank. Next week, price action in bond markets remains in the spotlight as key rate announcements are scheduled for the US, UK, and Australia. With expectations cemented for 25bp hikes from the Bank of England and the Reserve Bank of Australia and a 50bp hike from the Federal Reserve, much of the focus lands on forward guidance as monetary policy makers try to balance tackling inflation and keeping economic growth conditions robust.
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Simon Harvey, Head of FX Analysis
Ima Sammani, FX Market Analyst
Jay Zhao-Murray, FX Market Analyst
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