The start of the central bank bonanza | Forexlive

Central banks are back on the menu and they will be the focus of trading over the coming two weeks, more than anything else. At the end of last week, the Fed sort of hinted at peak hawkishness and that was enough for broader market sentiment to recover strongly. Can you imagine the sort of turn we might get when the Fed finally pivots?

The next two weeks will shape up to be a crucial one for markets and for dollar sentiment, as we will have to weigh up whether or not the Fed will gear towards a “less aggressive” path after the 75 bps rate hike in November. That could spark broader relief across markets but we’ll have to wait and see when we get to that bridge on 2 November.

It’s all about central banks now (and USD/JPY intervention) as stocks and bonds will also be taking cues from what policymakers will be hinting on the tightening cycle as well as the inflation and economic outlook. Given the circumstances, the next BOJ meeting decision might have the potential to catch markets offside so just be wary of that.

26 October – Bank of Canada monetary policy decision
27 October – European Central Bank monetary policy decision
28 October – Bank of Japan monetary policy decision
1 November – Reserve Bank of Australia monetary policy decision
2 November – US Federal Reserve monetary policy decision
3 November – Bank of England monetary policy decision