Central banks push back while USD hits new highs: The Global Markets FX Week Ahead Podcast

Last week was a busy week for central bank policy updates, with the Bank of England delivering the biggest market surprise by leaving rates unchanged after recent hawkish policy signals. The Fed meeting was less eventful; good communication from the Fed has prevented another taper tantrum as it outlined plans to start tapering Quantitative Easing. The USD has benefitted from the scaling back of rate-hike expectations outside of the US and is set to record fresh year to date highs in the week ahead.

Lee Hardman, Currency Analyst, and Michael Owen, MUFG’s Head of Global Client desk for EMEA in London, discuss the market implications of last week's events, adding a short GBP/CHF trade idea to reflect heightened downside risks for the GBP from rising inflation expectations and Brexit tensions.

Listen to the podcast for more insights.

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