Week Ahead: USD Into FOMC, EUR Into ECB, GBP Into BoE - Credit Agricole



Credit Agricole CIB FX Strategy Research discusses the FX market outlook for the coming week, and highlight the policy meeting of the FOMC, ECB, and BoE.
"Any ECB message that highlights QE as positive without adding to its dovish forward guidance could boost Eurozone stocks and EUR.We remain long EUR/USD and EUR/CHF," CACIB argues. 
On the FOMC, CACIB notes that the Fed is widely expected to hike rates but uncertainty over its policy outlook still lingers on.
"We see no change in that respect next week as we expect the FOMC to stick to its cautious message...which may prove to be less supportive for USD," CACIB adds. 
Finally, CACIB expects next week's BoE MPC to maintain a cautious view on the economy and dash hopes for earlier rate hikes.
"Some positives are already in the price of GBP, therefore currency gains may slow down from here," CACIB argues.

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