The FOMC will deliver updates on monetary policy and reveal the latest ‘dot plot’ which will confirm whether Fed officials maintain their prior stance of three cuts in 2024
Forecasts
Euro traders will be looking at the Federal Reserve and the Bank of England this week to help gauge EUR/USD and EUR/GBP future price levels
This week will bring policy decisions from central banks on both sides of GBP/USD
The recent record-breaking gold rally seems likely to continue as US interest rate cuts are now seen starting at the end of H1
The Pound looks set to start a new trading week at more-than seven-month highs against a United States Dollar broadly weakened by expectations that interest-rate cuts are surely coming.
US manufacturing data revealed a slowdown in ‘new orders’ and ‘employment’ sending the dollar lower on Friday. However, NFP data remains the focus next week
Next week’s ECB meeting is unlikely to see any change in monetary policy but post-decision commentary may give traders a better view when the first rate cut is set to be announced