Will this week’s FOMC meeting prove disruptive for FX carry trades? The Global Markets FX Week Ahead Podcast

The main focus for the FX markets this week is the upcoming FOMC meeting, which has the potential to trigger volatility in the week ahead, according to Lee Hardman, currency analyst at MUFG.

This could serve as a potential trigger to upset the market if the Fed turns more hawkish. With the release of inflation data for the U.S. last week showing inflation rising to 5% and core inflation rising to its highest level since the 1990s, there will be a close eye on whether the Fed changes their inflation language.

Elsewhere, with higher yields on offer in emerging markets, Lee offers his thoughts on the best currencies to look out for in the days ahead.

Disclaimer: www.mufgresearch.com (PDF)